A report from the Department of Transportation’s inspector general expresses more concerns about the Federal Aviation Administration’s ability to implement its Next Generation Air Transportation System (NextGen). NextGen is a $40 billion overhaul of the nation’s air traffic control system that would replace old-fashioned radar technology with modern satellite-based GPS navigation.
U.S. News & World Report’s columnist, Paul Bedard, reports that Transportation secretary Ray LaHood told him that it’s fun playing Santa Claus to states and cities around the nation.
It’s not uncommon to hear the claim made that the “stimulus” would have had a greater economic impact had the money been focused on infrastructure. But proponents of public “investment” in infrastructure seem to forget that the government allocates capital on the basis of politics rather than economics. Government is naturally inefficient because it is immune to the market signals that guide private actors who stand to lose their own money should an investment not pan out.