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Perhaps we are rich because, in this and a thousand other small decisions, we are not forced to make the economically inefficient decision? Cables are undergrou
by abtinf 7y ago
Perhaps we are rich because, in this and a thousand other small decisions, we are not forced to make the economically inefficient decision? Cables are underground where it makes sense (higher density neighborhoods where you have to dig during construction anyway) and above ground where it doesn’t (lower density rural areas).
Every time people are forced to make an inefficient decision, the cost is multiplied a thousand fold over time throughout the economy. Money spent burying cables isn’t available to invest elsewhere; a factory goes unbuilt; it doesn’t produce material wealth; it doesn’t hire a young worker into an entry level job; that worker never has a chance to grow and apply their mind to solve new problems; he doesn’t build a new, better factory or tech company one day.
- Filligree 7y agoYou say that, but constructing infrastructure costs several times more in the US than in, say, Denmark. Why is that?
- jrobn 7y agoPhony free market infrastructure bidding.
- rootusrootus 7y agoI would be interested to know where you got data on that topic.
- gwright 7y agoI don't think it is fair to toss all infrastructure in the same bucket but for infrastructure projects where there are US federal dollars involved, the Davis-Bacon act is one reason why costs are high. TL;DR Labor rates are above market rates due to the legislative requirements. See https://www.forbes.com/sites/timworstall/2016/08/31/union-wages-increase-construction-costs-by-20-abolish-davis-bacon/#13b14a13406e https://www.forbes.com/sites/timworstall/2016/08/31/union-wa... for one point of view on this issue. It isn't clear to me if these legislative mandates apply to power-line construction though.