This article originally appeared in the Cato Blog. Click here to read the full article.
By Ike Brannon
Should big-city governments be giving valuable city property to its wealthy residents for a pittance? The answer to that is not dependent upon political party or ideology, it would seem, yet it remains the standard practice nearly everywhere.
The property in question consists of the parking lanes in neighborhoods and main thoroughfares, and the cost of this giveaway is immense: Besides the loss in foregone revenue it adds greatly to traffic congestion, depresses demand for businesses in those areas, and contributes to pollution.
None of these are apparently sufficient to convince the supporters of these types of regulations who tend to be in charge of big cities like Washington, DC, where I live, to change this policy, so let me add another reason to do away with this: Giving away street parking is incredibly regressive. (for context, DC charged $25 a year for a neighborhood parking permit when off-street parking spaces go for $3,000 a year)