Too big to fail is too big, period

With the collapse of Bear Stearns and the US automakers and airlines tanking, and the prospect of a trillion dollar bailout of Fannie Mae, Freddie Mac, and who knows how many other large lenders, all because they are, putatively, “too big to fail” (by which is meant, obviously, not that they are so large as to be incapable of failing, but that they are so large as to make the consequences of their failing worse than the immediate, visible consequences of bailing them out), I’ve started wondering if perhaps what we really need is an update to our anti-trust laws, to the effect of: if you’re too big to fail, you’re just plain too big.

Instead of allowing corporate juggernauts to form, and then eventually being “forced” to save them from their own follies, why not just keep these captains of industry small enough that we never need to save them. The Feds already have to approve the bigger mergers and acquisitions – they already have this power by-and-large. Keeping our companies a little smaller would increase competition, and diversity within the corporate ecology of our markets. GM doesn’t want to make fuel efficient cars? Fine – their small-cars division can spin off and do its own thing. Sink or swim in its competition with Toyota, while GM itself just sinks, into an ever shrinking ocean of $150 oil.

Instead, we give taxpayer cash to large companies that have made bad business decisions, and absolve them of their obligations to pay the pensions they promised to their lifelong employees. We inflate the dollar and erode both our spending power, and our savings, while simultaneously crippling the long term competitiveness of our biggest industries. I don’t think the marginal increase in productivity from economies of scale that happens between being a $20 billion company and a $40 billion company is really worth it, if it means we’re all eventually on the hook for bailing out the $40 billion company, when we wouldn’t have to shovel mountains of cash at the two $20 billion companies… one of which might actually have made some good business decisions.

Texas says roads don’t pay for themselves

Recently the Texas Dept. of Transportation posted an article describing a study they’ve done showing that fuel taxes don’t even come close to paying for roads (reported on Streetsblog and Worldchanging independently). I’m not surprised by this, and it’s nice to have someone like Texas on my side. However, their article was light on details – what I’d really like to see is the GIS dataset displaying all the roads in Texas, color coded by what proportion of their maintenance costs they do generate in fuel tax revenue (the TXDOT article says explicitly that “not one road” in Texas pays for itself… suggesting that they have done this analysis).

However, when I contacted them for more information, I got this response:

Thank you for your inquiry and request for further information about the Asset Value Index mentioned on our Keep Texas Moving website. The article you referenced discusses a methodology that TxDOT has developed (and recently refined in response to comments made by the Texas State Auditor’s Office) to compare the costs and revenues associated with a particular segment of roadway. The attached report explains that methodology and provides a set of examples of its application. We have not performed this calculation for every roadway segment in Texas. And, we are not currently using the calculation at this time. However, we do believe that the methodology and the information produced from this calculation can be valuable in assessing roadway investments and needs.

If you have any further questions about the methodology after reviewing the report, please contact Lisa Conley or Ron Hagquist in the TxDOT Government & Public Affairs Division Research Section at 512-416-2382.

(emphasis mine) and a PDF of a report describing the methodology they used.

So, what’s going on here. Have they done the analysis or haven’t they? When will they release the full report, or are they going to keep it embargoed, if it even exists? Maybe I should give them a call.