I was party to a conversation recently–I was occupied and not taking part–where someone suggested that the interstate highway system didn’t cost taxpayers anything when it was first built because it was ultimately paid for with road taxes from truckers, trucking firms, companies that use the roads to transport goods.
American’s may not have paid a tax but they did pay for the cost of that tax in the cost of goods and services. The truckers, firms, and companies didn’t just eat those costs. They divided them out into the final price of the service of moving material and therfore the final cost of the product transported. The companies that were more efficient or better managed operated in a way that allowed them to absorb some of those costs to keep their service–the transportation–and therefore the product costs lower. These companies would earn more business and expand while less capable operations would falter.
The free market would seek the best service at the lowest cost, but those road taxes were still paid for by the end consumer of the materials moved.
Nothing. Is. Free.
