What is wrong with this picture? A highway is designed to last 40 years. It is paid for by a bond that is financed over 40 years. Then five years down the road major repairs are needed which are then financed with bonds over 40 years. Does anyone see the foolishness of this?
It is similar to finaning of schools and anything else. The term of the bond must be shorter or equal to the life expectancy of the item being financed. If not the financing is being paid for by others without any benefit what-so-ever.
Buiding a highway may improved efficiency, but it may at the same time cost more than it saved and therefore, can not be justified.
