> The problem is the initial construction is heavily subsidized either by State or Federal "growth" grants, or by developers who financialize the whole thing th

> The problem is the initial construction is heavily subsidized either by State or Federal "growth" grants, or by developers who financialize the whole thing through the sale of federally subsidized development loans. Cities also "financialize" the whole thing by selling bonds. The real difference is that when the developers originally build roads at their own expense (recouping it by the sale of the properties they developed), they pay much less than what the city then pays later to repave them. If you frame the question instead "why does the government pay so much more than private companies for the same products and services", it pretty much answers itself.