That looks like lack of maintenance, likely due to lack of funds due to a variety of problems. I don't think the "government" decided that... "We shall install 15.7 potholes and 3.4 curb collapses per mile" as policy...
Many seem to forget that the vast majority of those "job stifling" regulations were enacted to address problems. In many cases, very severe problems concerning worker safety, child labor, abuses, pollution, price-fixing, sub-standard construction... We can go on and on.
Paul and other Libertarians seem to think all these sorts of things will get ironed out by the free market. That abusing companies and corporations will simply be left behind by the bright, shiny, responsible ones.
That's, at best, unproven and at worst, nonsense. Yes, Enron was shut down... After nearly bankrupting California and causing untold misery. The Chinese firms that were putting melamine into baby formula and pet food was shut down.... After untold numbers of death, sickenings, and heartbreak.
And these firms (to name only a couple off the top of my head) were shut down by the various regulatory structures that the Libertarians say we don't need.