Thursday, March 12, 2009
I'm sure many cities have higher priorities than transportation. And I would have liked to have seen more direct aid to ailing local governments in the stimulus bill. Still, MTA's approach strikes me as a bit too creative. What's next, stimulus money credit default swaps?Now that would appear to be efficient; if a city in LA County wanted to, say, finance a couple extra police officers rather than five new shelters on a bus route, it could make that choice; the buyer gets $500k of transportation spending for $320k or so, which might make a transportation project that had benefits of $400k now a winner. Seems like a win-win?
Of course it was too good an idea to survive government: the plan has been canceled. (h/t: Tyler Cowen.)