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> The economies of scale make it easier for a city or county to maintain machinery for paving roads and making sidewalks

Generally that equipment is useful for more than just paving roads and is owned by private contractors in the US - the same contractors could be hired by county, city, or neighborhood.

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It depends. Where I live the city owns a lot of roadbuilding equipment directly, and employs people to operate it. The roads they build are garbage. Uneven, bumpy, rainwater pools on them, etc.

Sometimes they have too much work and contract some jobs to private paving contractors. The roads they build are flat, smooth, and drain well.

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