Why U.S. Infrastructure Costs So Much
I don&#x27;t have any love for NYC construction unions and their ridiculous work rules, but the fact that France -- France! where strikes shutting down the whole country is a national pastime -- does better means that can&#x27;t be the number one answer. Similarly we can rule out corruption because even Chicago is a piker compared to Shanghai. I think both unions and corruption play a part but not of the first rank.<p>The first candidate I&#x27;d propose for the top slot is diffusion of responsibility stemming from a US obsession with localism. An MTA project might well be paid for by: the federal government, NY state, NYC, and bonds to be paid back by a dedicated tax in 10 downstate counties. There are contracting rules imposed by each of those sources. And it is administered by the MTA board, a monstrosity with appointments from eight different sources. The buck stops nowhere.<p>The second candidate is, paradoxically, the progressive era procurement rules designed to rein in corruption. They leave too little discretion. In a two sided competitive game, if one side is hampered in by slow changing inflexible rules the other side is going to dominate. That&#x27;s exactly what happens. Government contractors play the system like a fiddle and there&#x27;s little the government negotiators even when they are supremely competent and diligent can do about it.