A recent op-ed published in Newsweek decried the subsidies we give to our rail networks. Apparently, the author thinks the billions we spend on highways pays for itself. Thanks to Saint Louis Urban Workshop for flipping this argument on its head. Read carefully to get the full meaning of this truly intelligent post.
The
ObamaEisenhower and every subsequent administration’s enthusiasm forhigh-speed railendless highway and road building is a dispiriting example of government’s inability to learn from past mistakes. Since 1971, the federal government has pouredalmost $35 billion$1.89 trillion in subsidies intoAmtrakair and highway funding withfew publicbenefits that favor a few over many.At
mostleast, we’ve gottennegligible reductions—invisible and statistically insignificant-unprecedented and dangerous increases in congestion, oil use or greenhouse gases. What’s mainly being provided is subsidized transportation for a small sliver of the population. In a country where140135130 million people go to work every day, Amtrak has 78,000 daily passengers.A typical trip isSome trips are subsidized by about $50, some more, some less.Given this, you’d think even the dullest politician wouldn’t expand
railhighway and road subsidies, especially considering the almost $11 trillion in projected federal budget deficits between now and 2019. But no,theevery administration has madehigh-speed railspending more on highways and roads a top priority. It’s already proposed spending$13 billionmore than $100 billion ($8$49 billion in the “stimulus” package and more than$1$50 billion annually for five years)as a down payment on high-speed rail in 10 “corridors,” including Philadelphia to Pittsburgh and Houston to New Orleansto maintain and build roads between places like Muncie Hollow, OH and Cedar Canyons, IN.The White House
promises fabulous benefitssuggests that our transportation policy is too heavily skewed toward unsustainable roads and highways. High-speed rail “will loosen the congestion suffocating our highways and skyways,” says Vice President Biden. A high-speed rail system would eliminate carbon dioxide emissions “equal to removing 1 million cars from our roads,” adds the president. Relieve congestion. Fight global warming. Reduce oil imports. The vision isseductivepractical. The audience iswillingeducated. Many Americanslove trainsknow that train travel can be more efficient and more enjoyable and regard other countries’ systems (say, Spain’s rapid trains between Madrid and Barcelona, running at about 150 mph) as evidence of U.S.technologicaltransportation policy inferiority.There’s only one catch: The vision
is a miragerequires policy changes. The costs of high-speed rail would behugeless than highways and roads, and the public benefitsmeagergreater.
President Obama’sThe current highway and road networkmaywill never bebuiltmaintained. It’s doubtful private investors will advance the money, and once government officials acknowledge the full costs, they’ll retreat. In a recent report, theGovernment Accountability OfficeU.S. Department of Transportation cited a range ofconstructionmaintenance only costs for highways and roads,from $22 million a mile to $132 million a mileof about $850,000 per mile per year.Harvard economist Edward Glaeser figures $50 million a mile might be a plausible average. A 250-mile system would cost $12.5 billion and 10 systems, $125 billion.That
would beis only the beginning.Ticket pricesAll roads and parking lots would surely continue to be subsidized; otherwise, no one wouldride the trainsdrive their car or park anywhere. Would all the subsidies be justified by publicbenefitsdetriments —lessmore congestion,fewermore highway accidents,lowerhigher greenhouse gases?In an
blog-postedanalysis, Glaeser madegeneroussome assumptions for trains (”Personally, I almost always prefer trains to driving”) and still found thatcosts vastly outweigh benefitsexpanding our passenger train network is worth exploring. Consider Obama’s claim about removing the equivalent of 1 million cars.Evenif it came true(doubtful),it would represent less than one-half of 1 percent of the 254 million registered vehicles in 2007thousands of tons of greenhouse gases not released into our atmosphere.What works in Europe and Asia
won’twill work in the United States (think the Autobahn and Medicaid). Even abroad, passenger trains highways and roads are subsidized. But the subsidies are more justifiable becausegeography andenergy policies differ.Densities are much higher, if you insist on counting places like Wyoming, Alaska, Montana and others, and high densities favor rail with direct connections between heavily populated city centers and business districts. In Japan, density is 880 people per square mile; it’s 653 in Britain, 611 in Germany and 259 in France. By contrast, plentiful land and $Billions in subsidies in the United States has led to suburbanized homes, offices and factories. Density is 86 people per square mile. Trains can’t pick up most people where they live and work and take them to where they want to go. Cars can. Though densely populated corridors in the U.S. have population densities greater than Germany or France.
Distances also matter. America is big; trips are longer, though not in our densely populated urban corridors. Beyond 400 to 500 miles, fast trains can’t compete with planes. Finally, Europe and Japan tax car transportation more heavily,
pushing people to trainsassessing the true cost of driving a car to the driver. In August 2008, notes the GAO, gasoline in Japan was $6.50 a gallon. Americans regard $4 a gallon as an outrage. Proposals for stiff gasoline taxes (advocated by many, including me)go nowhereare opposed by those invoking folklore and asphalt as good policy.The mythology of
high-speed railendless highways is not just misinformed; it’s antisocial. Governments at all levels are already overburdened. Compounding the burdens with new continued and increasing wasteful subsidies would squeeze spending for more vital needs—schools, police and(ironically)mass transit. High-speed rail coulddivertaugment fundsfrominvested in mass-transit systemsthat, according to a study by Randal O’Toole of the Cato Institute, have huge maintenance backlogs: $16 billion in Chicago; $17 billion in New York; $12.2 billion in Washington; $5.8 billion in San Francisco. According to the Christian Science Monitor the highway, road and bridge maintenance backlog is $155 billion and growing as the $75 billion in annual spending cannot keep pace with infrastructure deterioration. Anyhigh-speed rail systemhighway or road should be financed locally; states should decide and pay for their transportation priorities.All this seems familiar, because it’s
Amtrakour national transportation policy writ large: the triumph offantasyignorance and folklore over fact. The same false arguments used to justifyAmtrakroads and highways (less congestion, pollution, etc.individual freedom, the Founding Fathers, the Constitution, etc.) are recycled. Evidence and experience count for little. Obama and Bidenpander to popular prejudicesseek a new transportation policy instead ofrecognizingblindly adhering to past failure. Boondoggles become respectable. A White House sofrivolousserious in embracingdubiouscommonsense spendingcannotmust be believed when it professes concern about future taxes and budget deficits.
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