Originally Posted by clem k:
Originally Posted by david1:
As I have stated before Amtrak should stand on their own without our tax dollars. Time for them to make a profit or go to the dust bin of history.
The freight railroads should not get subsidies either, nor should the marine operations or the airports or the highways
Your right, no business should get subsidies.
The things is, many for profit businesses do. If the trucking industry had to pay the true cost of them operating on the roads, they would not be that profitable, the road use taxes they pay and the tax on diesel fuel covers only a percent of the damage 80,000 pounds of trucks put on the roads, for example, that cost is picked up by motor vehicle fuel taxes paid for by cars (who cause a tiny fraction of all wear and tear), and by state taxes as well. Airports charge airlines a fraction of the cost of running the airport in the form of gate fees, and running the FAA is paid for by government revenue, as are regulatory bodies like the NHTSA, and the TSA. The argument is that trucking and the airlines generate economic activity that helps pay for their costs, and there is some logic to that..but the same is true of things like Amtrak as well, at least on lines like the Northeast corridor. There are plenty of examples of this, the automative plants down in the Tennessee valley region are subsidized by federally generated electric power, that charge only their cost of production, so they are paying 50% or less than what a commercial plant would charge, and the argument is the TVA and Washington state power creates jobs and economic activity.
When it comes to Amtrak, the subsidy is a lot more public, many of those if you told them that trucking and the airline industry or the many auto plants down in the TVA region are being subsidized by the government, they would say the government doesn't pay anything, those are private industries making a profit and paying their way, because their subsidies are hidden. Parts of Amtrak are creating economic benefits, they help prevent crowding of airports in the busy corridors, they get you center city to center city, unlike many airports where they are difficult to get to, and they often provide service to places that otherwise would have no transit options, airports being far away..not to mention that trains pull traffic off of roads that are already congested, and ever look at how much it costs per mile to widen highways?
At one point, the NY Central back in the 50's was reputedly making more money from passenger operations than freight operations and I believe the Pennsylvania may have been. In part, passenger operations became less profitable because other forms of transportation were being heavily subsidized and pushed, think about the cost of the interstate system and how much highways cost to maintain and build, when the railroads were paying all the costs of running their rail network. Think of the heavy subsidization of the airline industry, the building of airports, the infrastructure to brings roads to them and such (the Van Wyck in NYC was built basically to attack the east river bridges to Kennedy airport), the government agencies that run the airports, the direct and indirect subsidization of jet fuel (government policies to keep it cheap), and railroads were trying to compete against transport that was being heavily subsidized.
The answer on high speed rail, true high speed rail, would likely be separate right of way, and it makes sense only where it is truly going to be utilized. Northeast Corridor, the corridor between San Diego and San Francisco, Maybe Chicago to NYC if fast enough, but there has to be the traffic, and it can't be based in "me too", where every little whistle stop wants it, where rural area politicians clambor for it, it has to be economically justified (not profitable, just justified). If we subsidize the automobile, trucks and planes, why not trains as well?