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America Builds 1 Mile of Highway for $50M — China Does It for $6M. Here's Why (www.youtube.com)
submitted 4 months ago* (last edited 4 months ago) by to c/sino@hexbear.net
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Most people assume China builds cheap roads with cheap labor. The math proves otherwise.

Strip out every Chinese labor cost and replace it with American union wages — the price goes from $6M to $6.8M per mile. Not $50M.

So where does the other $44 million actually go?

In this video, we break down the exact cost structure behind the world's largest highway network — 110,000 miles built in 35 years — and the three systemic decisions that explain the gap America's infrastructure debate never talks about.

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[–] 15 points 4 months ago (3 children)

If you ask right wingers, it's cuz of regulations like environmental reviews and the state historic preservation office and Davis-Bacon wages driving up the cost of construction. I'm not gonna click the link, so what does this guy say?

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  • [–] 14 points 4 months ago (1 child)

    I'm not gonna click the link, so what does this guy say?

    1. land is state-owned so they don't have to pay market value for land acquisition, which averages $12 million per mile in the u.s. compared to $400k in china

    2. environmental reviews and regulatory compliance averages $9 million per mile vs. $180k in china

    3. parasitic capitalism, which he calls "supply chain", which averages a 22% markup on constructions costs for u.s. projects for another $8.3 million difference

    A standard US highway project contracts separately for geotechnical survey, design, earthworks, drainage, concrete supply, asphalt production, paving, signage, electrical, and landscaping. Each contractor carries its own overhead, profit margin, bonding requirements, and mobilization costs.

    1. he says chinese highways are designed for 20 year service life while u.s. highways are designed for 40 year service life, so there's another $6 to $9 million per mile lower up front cost from lower material requirements. it was designed this way with the high speed rail project in mind, knowing that freight transport would be shifted primarily to rail when the highways were reaching the end of their service lives.

    so mostly central planning and not having to deal with private property rights

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