January 23, 2006
Government and Cars c. 1906

Government has a long history of involving itself in developing markets. From the Jan 23, 1906 NYT is a story concerning automobile taxes in New Jersey. A bill is to be presented and signed into law by the governor which provides for:

  1. A speed rate of 8 miles an hour in cities and towns.
  2. A speed rate of 20 miles an hour in open localities
  3. A registration of 50 cents per horse power imposed on all vehicles.
  4. A registration fee of 25 cents per horse power for all drivers
  5. Tourists visiting the State for a short time will be required to pay a registration fee of $1 a day
  6. The bill creates a Commissioner of Motor Vehicles who will have "power to appoint as many Inspectors as may be needed, all of whom shall have power of arrest for violations of the law."
  7. "All cheaffears will be required to pass a satisfactory examination before receiving a license to drive a car"
  8. No drivers under 18 years old will be given a license.
That's one comprehensive bill and offers a lot of potential talking points about how government responds to a new and developing market with knee jerk of two kinds. First, how to contain the market and make it "safe." Second how to control the market and make it provide "revenue" to the state.

To rub salt in the wound, as it were, the story goes on to promise that "[t]he money received through the provisions of the bill will become part of the State road fund, and a portion of this fund may be used by the State Road Commissioner to place suitable signs at road intersections and to provide lights at dangerous points at night."

Do we think the the Road Commissioner job would be coveted? He could hire as many "inspectors" as wanted/needed, and his second cousin could get the "sign" contract.

Posted by Craig Depken at 12:01 PM in Economics  ·  TrackBack (0)

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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