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does amtrak make a profit or are they still being subsidised by the Govornment
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<p>[quote user="NKP guy"]</p> <h3>This is a worthy question, but may I ask:</h3> <h3><i>Does the Defense Dep't make money, or is it still subsidized?</i></h3> <h3><i>Does the EPA make money, or is it subsidized?</i></h3> <h3><i>Does Federal air traffic control make money, or it is subsidized?</i></h3> <h3><i>Is the FDA making a profit, or is it subsidized?</i></h3> <h3><i>Is the Interstate Highway network profitable, or it is subsidized?</i></h3> <h3><i>Does the Intra-Coastal Waterway make money, or is it subsidized?</i></h3> <h3><i>Does the Small Business Administration make money, or is it subsidized?</i></h3> <h3><br /></h3> <h3>Governments aren't in business to make money. Amtrak is, to my mind, something this country needs and I, for one, am GLAD to subsidize it, no matter the cost. One last thing, ever figure out what per cent of the Federal budget or deficit is caused by Amtrak? Then look at the items above. Tax me more, but give me an even better Amtrak. But another war, or Wall Street bailout? No thanks. [/quote]</h3> <p>None of the aforementioned governmental activities are commercial activities. They don't make money because they were never intended to make money. Defense, for example, is a pure governmental activity. Accordingly, to say they are subsidized is inappropriate. However, several of them, e.g. FAA, Interstate Highway System, etc. are designed to recover their costs through user fees, which they do for the most part.</p> <p>Some of the users of the airways, highways, waterways, etc. are commercial enterprises. They are expected to earn a profit for their shareholders. If they don't, they go out of business. Witness all the airlines that have gone belly up. The majority of the users of the airways, highways, etc. are not commercial enterprises. They are private individuals who pay for a portion of the infrastructure through a variety of user fees. Whether they pay their fair share is arguable. </p> <p>Amtrak is a commercial enterprise set-up by and sponsored by the federal government. It was designed to cover its costs and, hopefully, earn a profit. It has not even come close. It is heavily subsidized because it cannot cover its costs and would go out of business without the subsidies. </p> <p>Unlike private automobiles, private airplanes, pleasure boats, etc., Amtrak is a commercial carrier. Thus, for comparison purposes, it should be compared against commercial carriers, i.e. commericlal airlines, bus operators, etc. </p>
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