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Friday
Mar022012

Quote of the Week: Strong Towns on Hidden Costs

When I bought my computer, it came with a printer costing me no more than $20. At the time I thought “Sweet, free printer!” But since using the printer, I’ve had to frequently purchase ink costing $60 a pop. Over the life-cycle of the printer, I’ve realized I’ve spent more in the printer and ink combined than had I purchased a laser printer costing $250. The upfront costs of a more expensive printer are significant, as is the toner, but I would end up paying less than the subsidized printer in the long run. In other words, I was seduced by the free machine that ended up costing me a lot of money.

Here is the connection to Strong Towns. Federal and State subsidized projects are like the $20 printer. Initially communities think “Sweet, free bridge.” But, once you figure the cost of keeping the bridge in working order, it turns out to be a major expense for communities. This is an expense that if a community couldn’t fund the bridge to begin with, likely wouldn’t have the wherewithal to maintain.

Solution: Purchase the bridge (printer) at full cost, without a subsidy. If you can do that, then you can likely afford the cost of maintenance (ink).

This is another great metaphor that the Strong Towns organization has passed along.  It reminds me of the Johns Creek roads dilemma that the AJC recently wrote about here.

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