I wanted to correct an oversight in [the Aug. 3] story about the Indiana Toll Road lease agreement. Contrary to the assertion
regarding toll increases, the actual terms allow for the increase to match nominal GDP per capita, not nominal GDP.
As stated, nominal GDP has grown at 5 percent plus per annum for a long time, however, per-capita GDP has grown at a much lower rate (e.g., 1 percent since 1990). Per-capita GDP controls for the effect of labor force growth on overall output to represent the actual gain in living standards for the average individual.
In all likelihood, these historical figures will prove fleeting, as growth trends continue to moderate. As such, I cannot help but agree with the author’s assessment: the state of Indiana got a pretty good deal on the lease-sales agreement. Pennsylvania politicians take note.