The Economics of China's Mega Traffic Jam

The recent 11-day traffic jam in China was no fluke. As The Economist explains, the crushing congestion is little more than a real-world example of imbalances in supply and demand.

Car ownership is on the rise in China. So is the construction of new highways. But one is rising faster than the other.

"Roadworks and booming demand for coal and other goods sent thousands of lorries heading for China's capital. Beijing is set to spend 80 billion yuan ($11.8 billion) on transport infrastructure in 2010-but it may not be enough. In recent years rising vehicle ownership has outpaced the growth of China's express highway system by a distance."

Thanks to GOOD

Full Story: The great crawl of China

Comments

Comments

No, it's capitalism in action.

The Economist gets it wrong again - big surprise.

This is not an imbalance of supply and demand, it's capitalism in action.

Soviet Russia eventually recognized that they were collapsing. Capitalist America has not yet had this realization. Hence the rationalizations coming from places like The Economist.

Book cover of the Guide to Graduate Planning Programs 4th Edition

Thinking about Grad School?

New! 4th Edition of the Planetizen Guide to Graduate Urban Planning Programs just released.
Starting at $24.95

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $209

Essential Readings in Urban Planning

Planning on taking the AICP* Exam? Register for Planetizen's AICP * Exam Preparation Course to save $50.
$369 includes free shipping!
Red necktie with map of Boston

Tie one on to celebrate your city

Choose from over 20 styles of neckties imprinted with detailed city or transit maps.
$44.95