Maintenance costs for a road connecting small communities in the Hudson Bay region were cut in 2015 – and the predictable increase in potholes arrived on cue. James Bay Road (JBR) in northwestern Quebec (Canada) is a two-lane, 388-mile journey from the town of Matagami in the province’s interior north to Radisson, a village of about 500 people. The termination point is 1500 kilometers (about 900 miles) north of Toronto.…
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The semi-annual discussions on America’s infrastructure spending – including how to fix potholes, as well as bridges, tunnels, ports and public transportation – should be studied in economics classes everywhere. It has everything: supply and demand, the multiplier effect of government spending, the tradeoff of taxation against consumption, international trade/fossil fuel pricing and, of course, politics. And here we are in the first quarter of 2015, where there is lively…
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