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Surely the free road system is the most serious distortion in the market. And free access to public transport could help rebalance that. We may end up with unintended consequences, but that is likely to be better than the negative consequences we live with right now.

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yes, we should better price in the cost of free roads rather than try to rebalance by making public transit free. i'd suggest making registration fees even more contingent on length and weight of vehicles, on a superlinearly escalating scale (e.g., some folks suggest to the 4th power due to that being the factor of weight on road wear).

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