Rationales Government Intervention on Modes of Transport

The Role of Government in Transportation

The government is directly involved in many kinds of transportation, including rail, road, sea, air, and pipeline. This is seen in its expenditure on roadways, canals, ports, and airports. It greatly aids in the establishment of facilities that are critical infrastructure in transportation and management. Transportation is one sector where competing interests exist, which leads to government involvement in it. In exchange for transportation facility users and service providers, the government charges taxes. At the same time, it establishes separate regulations for various kinds of transportation. Thus, this ensures that all modes of transport abide by transportation safety, weight, and track size as well as anti-trust laws which are recommended (Johansson, 2014).

Government Funding for Transportation Infrastructure

Traditionally, the government provides infrastructure funds that are used in building highways. It also allocates budget through the developmental expenditure that is utilized in the construction of seaports, railways, and airport. Furthermore, the government also ensures that sanity exists between the different modes of transportation by setting up rules that regulate their operation. Thus, government’s intervention on the mode of transport cannot be ignored since they are present in almost every aspect of the economy (Johansson, 2014). Though the private sector plays a significant role in the development of modes of transport, the government contribution goes unmatched. The GDP is effectively developed upon a high reliance on all modes of transport. This is due to the easy movement of people, goods, services, and also information across various regions enhanced by various modes of transport. Therefore, increased movement of products across the economy leads to an increase in gross domestic product (GDP). As a result, increase in a country’s GDP serves as an indicator of increased growth in economy.

The Benefits of Government Intervention in Transportation

Government contribution can be owed to the value that it attaches on general economic growth. From the above information, I concur that the government intervention on modes of transport is diverse. The intense support by government serves to make the modes of transport more reliable and efficient.

Reference

Johansson, O., Pearce, D., & Maddison, D. (2014). Blueprint 5: True costs of road transport (Vol. 5). Routledge.