John Stossel

When Democrats and Republicans agree, I get nervous. It often means that they agree to grab my wallet.

Both parties now agree that we don't have extra budget money lying around, but both say government does need to spend more on "infrastructure."

Even conservatives want more spent on roads and mass transit.

The reason, advocates claim, is that infrastructure, unlike most government spending, has a "multiplier effect" -- it creates new wealth by doing things like speeding up travel.

Well, it might.

Advocates also point out something that seems obvious to them: Infrastructure is a job that must be done by government. Who else would launch big projects like the New York City subway system? Subways are what Big Government supporters call a "public good."

They are important to many people, but there's no way that business would build subways or run them, they argue. Subways lose billions of dollars. Entrepreneurs would never invest in subway cars or dig subway tunnels -- there's no profit in that.

But often what we "obviously know" ... is not so.

Most of New York's subways were actually built by private companies. Few New Yorkers even know that. Private companies dug the first tunnels and ran the trains for about 40 years. But when they wanted to raise the fare to a dime, the politicians said they had to "protect" the public. Government took over the system, saying only "public ownership" could guarantee affordable fares.

But government doesn't do anything well. Under government management, profit disappeared and the fare rose well beyond the inflation-adjusted equivalent of what the private companies had wanted to charge.

Now, politicians want you to buy them new trains. Who wouldn't like a shiny new train? The Obama administration gave your money to California politicians who want to build a 200-m.p.h. train to take people from Los Angeles to San Francisco. Somehow, in the tradition of political boondoggles everywhere, the train that politicians actually approved doesn't yet come close to either city. It starts, and ends, "in the boondocks," says Reason magazine's Adrian Moore.

"I live in a little mountain town called Tehachapi," he says. "It's in the middle of nowhere, 50 miles to the nearest Walmart ... the high-speed rail line in California comes right through my town. This thing is like the boondoggle of boondoggles."

When I confronted train advocate Dennis Lytton about that, he said, "They're starting high-speed rail in the middle of the state because that's where you can build it fast."

John Stossel

John Stossel is host of "Stossel" on the Fox Business Network. He's the author of "No They Can't: Why Government Fails, but Individuals Succeed." To find out more about John Stossel, visit his site at > To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at ©Creators Syndicate