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[quote user="ontheBNSF"] [quote user="Bucyrus"] [quote user="Murphy Siding"] [quote user="Bucyrus"] [quote user="Murphy Siding"] I have a hard time believing that any meaningfull railroad re-regulation will ever be implemented.  The railroads could make a very simple analogy that most voting Americans could understand.  Re-regulation of railroads will add to transportation costs for everything that ships by rail in this country.  A limited number of shippers would benefit from re-regulation.  Many of those shippers are fairly wealthy and prosperous corporations.    Railroad re-regulation is like taxing all of us, and then giving that money to a few wealthy corporations.  What Senator or Congressman is going to vote to tax his (or her) constituant's corn flakes, in order to give the money to Exxon-Mobile?   [/quote]   I understand your point.  But while the railroads argue that regulation will be like a tax flowing to the rich, the regulators will portray new regulations as a tax increase on the rich, as in rich railroad corporations, for the purpose of ending railroad monopolies, which will make the voters' corn flakes cheaper. The regulators want to regulate for their own self interest.  So the regulators' rationale will be presented to accomplish regulation, not to defeat it.  Therefore, the regulators will side with the shippers, and together, they will defeat the railroads.   [/quote]  In my best Foghorn Leghorn voice>>  "Senator Bucyrus, would you please explain to this here committee , and to the voters back home,  why in tarnation you voted to raise the cost of living for every man, woman, and child in these here United States of America, for the sole benefit of some wealthy corporation big-wigs?  I say...I say... speak up son,  and looky right here into the camera."[/quote]   I would say this to your committee: New regulations will not raise costs for the consumers.  On the contrary, new regulations will lower consumer costs by ending a transportation monopoly.   Shippers need transportation choices in order to deliver the goods we all need at the lowest possible cost.  A monopoly limits transportation choices, and therefore, it artificially drives up prices higher than they should be.  This reform is long overdue.         <div style="clear:both;"></div> [/quote] Competition doesn't necessarily drive down prices. Competition only works when it is a result of market forces. Standard oil and Bell significantly lowered prices despite being monopolies. I have pointed out that Freight Rail competes with other modes. Economies of scale can lower prices. <div style="clear:both;"></div> [/quote] ontheBNSF, I understand your point, and agree with it, but re-regulation will not be done for objective economics.  Instead, economic fairness will largely be just a pretext to regulate.  A much larger motive/objective for regulation is that regulation is a power grab by regulators.  It builds empires for the regulator community.  So regulation is often self-motivated, but it needs an ostensible reason.  In this case, monopoly busting is the ostensible reason.  And regulation always advances when regulators are in ascendency.  Today, we are obviously entering a new season of regulation.  And the freight railroads, flush with success, are ripe for regulation. However, I do not expect the anticipated new regulations to introduce competition will get much traction in the near future.  That kind of regulation requires a sea change in railroad organization and rate structure to bring about some version of open access.  It will not come about without the institution of a new National Railroad Transportation Policy (NRTP).  These are significant steps along the path to nationalization of the railroads.    Rather than these manly sorts of new regulation, the low hanging fruit of new regulations will be things like the PTC mandate.  That would never have happened in the regulation off-season.  But the time is now ripe, and I would say look for more of the same.  Public safety is a wonderful pretext for the regulator community to advance their interest.  Get ready for the ECP brake mandate.
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