The Boondoggle of Long-Distance Passenger Rail

April 3, 2021 by Dan Mitchell @ International Liberty 

Infrastructure often is a good thing. Government-financed infrastructure is a questionable thing. Infrastructure financed by Uncle Sam is a bad thing. Those three rules guide my thinking and make for a perfect introduction to this must-watch video from Reason on high-speed rail.  

The core message from the video is that Californian’s disastrous experience with high-speed rail should be a warning for the entire nation.  Simply stated, the government is incapable of doing infrastructure without jaw-dropping cost overruns.

But even if – by some impossible miracle – the government spent the money wisely and efficiently, long-distance rail doesn’t make sense. Why? Well, if I do a tweet-of-the-year contest for 2021, this entry from Rory Cooper would be an early favorite to win the prize.

Instead of expanding the federal government role, it’s time to end Washington’s involvement.  That means shutting down the entire Department of Transportation.  But let’s focus specifically on Amtrak. Chris Edwards wrote wisely on the topic for the Foundation for Economic Education.

The federal government does a lot of things poorly… After the government helped ruin private passenger rail in the post-WWII years, it took over the remaining passenger rail routes in the 1970s under the Amtrak brand. Amtrak was supposed to become self-supporting, but it has consumed tens of billions of taxpayer dollars over the years.

…Amtrak operates 44 routes on 21,000 miles of track in 46 states. Amtrak owns the trains, but freight rail companies own nearly all the track. A Pew analysis found that Amtrak loses money on 41 of its 44 routes…

The few routes that earn positive returns are in the Northeast, and the biggest money losers are the long-distance routes. …the best fit for the future would be a privatized Amtrak. Privatization would allow for innovation and cost-cutting to improve service and make rail more financially viable. A private rail company (or companies) could…end harmful union rules. It would be able to close the routes that are losing the most money and shift resources to the core routes to improve service quality.  Congress should get out of the passenger rail business and give rail the private-sector flexibility it needs to better compete against other transportation modes.

Amen. If inter-city rail travel makes sense, it can and will attract funding from the private sector.  Sadly, 

 

President Biden wants to move in the opposite direction. His so-called infrastructure plan makes taxpayers foot the bill. The White House wants $80 billion for rail, though it’s unclear how much money would be allocated specifically to Amtrak compared to other rail projects.  What is clear, by contrast, is that the money will be wasted and America’s economy will be harmed.

P.S. Biden’s “stimulus” boondoggle included a bailout for mass transit, but no funds for intercity rail travel.

P.P.S. If you’re transportation wonk, here’s a very informative 45-minute video on rail and highway transportation.