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[quote user="Paul Milenkovic"] [quote]Economic arguments that high-speed rail should not be "subsidized" ignore many ways that other travel options are indirectly "subsidized" or otherwise supported by our government.  Most other developed nations have figured out that passenger trains are important. [/quote] Did I ever say trains should not be subsidized?  Other people may have chimed in with that point of view, but I have never, ever stated that trains should not get subsidy. What I have brought up, time and again, and there are a few on this Forum who back me up on this, is that the rate of subsidy is a serious problem in getting a political constituency for yet more subsidy to get higher levels of train service. What is the argument for subsidizing Amtrak at the rate of 20 cents/passenger mile?  What social benefit or combination of benefits (reduced energy use, and how much energy is Amtrak saving in percentage terms, by the way?) are worth that rate of subsidy? Is there so much inherent goodness with train travel that any rate of subsidy is justified?  What is the limit to spending that someone would say, gee, we are not getting enough in return? [/quote] Ideally all transport subsidies could be phased out over five to seven years.  They distort the market, which is the best way to allocate scarce economic resources.  Each mode of transport would absorb its full cost and pass them on to the user in ticket prices and fuel taxes.  Unfortunately, given the political nature of transport subsidies, this will not happen.   Passenger trains make sense in relatively short, high density corridors, especially where the cost of constructing additional highways and airways is prohibitive.  In these cases, subsidizing them is justified.  But subsidizing long distance trains, which require an inordinate amount of support, while serving a small per cent of intercity travelers, is not justified.  By the same token, pouring massive subsidies into high speed rail, especially for a nation that has the debt profile of the U.S. is, makes no economic sense.
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