Taxing Traffic Jams

Yglesias takes seriously the dilemma of traffic in America’s biggest cities and the potential rewards of solving the problem:

Naturally an underpriced valuable commodity leads to overconsumption. Traffic jams, in other words. Every once in a while Ben & Jerry’s holds a “Free Cone Day” that invariably leads to long lines. Roadways in dynamic metro areas are basically holding Free Cone Day five days a week. Charge people enough money to eliminate routine congestion and you’ll find yourself with fewer traffic jams and an enormous pool of revenue that can be used to maintain your basic infrastructure and upgrade your bus service.