economy
America’s new infrastructure bill has a hidden tax on everything you buy
Infrastructure bills like the “BUILD America 250 Act” typically build two things. One is physical: roads, bridges, ports, rail corridors, freight networks. The other is legal infrastructure that determines how safely, quickly, and affordably people and goods can move. For the latter, the act relies on the old political playbook — new layers of regulation without full regard for the old — and puts some of its goals at risk.
TL;DR
- Infrastructure bills build both physical structures and legal frameworks for movement.
- New regulations, without accounting for existing ones, can increase costs and slow down the movement of goods.
- A 5% increase in federal rules can lead to significant increases in unit costs and prices, and a reduction in quantities shipped.
- Performance-based regulations, which set safety objectives, are more effective than mandating specific operating practices.
- The Staggers Rail Act of 1980 is cited as an example of successful deregulation leading to improvements in productivity, investment, costs, and safety.
- Future transportation policy should focus on evidence-based, performance-oriented regulations that accommodate new technologies.
- Transportation policy should be judged not only by spending but also by the regulatory system it creates.