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Bloomberg article on AMTRAK plans
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<p>Each generation defines the public good. The views of a long dead personage, irrespective of his or her reputation, are irrelevant. The key question is how the body politic defines the public good for the current population.</p> <p>Most people would agree, I think, that a robust transportation network is critical for any modern society. The question is whether intercity passenger rail, which is used by a very small percentage of intercity travelers, as per DOT's National Transportation Statistics, serves the public good or whether it serves the interests of a narrow, special interest group.</p> <p>With the exception of a relatively few high density, short corridors, passenger rail does not serve the public good. And within the corridors, primarily the NEC, first class service, i.e. Acela, business class, etc. does not serve the public good. It serves the elite who can afford to pay the premium fares.</p> <p>People of good will can disagree on what is the public good. Obviously I differ from your perspective of the public good. You are entitled to your views as I am entitled to mine. We are not likely to change each others views.</p> <p>According to CBO testimony by Joseph Kile, Assistant Director for Microeconomic Studies, entitled "The Highway Trust Fund and Paying for Highways", before the Committee on Finance, United States Senate, May 17, 2011, the total U.S. spend on roadways is approximately $160 billion per year, with approximately $40 billion coming from the federal government. Most of the spend is recovered through user fees, fuel taxes, investment interest, and property taxes. The property taxes are paid by motorists. The claim that $150 billion of the $160 billion is a subsidy is not substantiated by any numbers that I have reviewed. </p> <p>My references to comparative subsidies pertains only to the federal subsidies. I have listed the sources for my data in numerous previous posts going back nearly five years. In addition, I have draw reference to a variety of studies performed by DOT and the CBO. </p>
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