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PRIVATIZING AMTRAK
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<p>[quote user="Sir Madog"]</p> <p>Well, I don´t know whether there are any answers, as long as US politics and politicians seem to have a somewhat distorted view on passenger rail services. Most of them keep on crying about how much tax money Amtrak is eating up, yet no one seems to have questioned the billions of $$$ of hidden subsidies that went into air transport (and trucking, if you like).</p> <p>Privatization is not the answer. The British had to learn that the hard way, and Germany still has to learn it. It finally boils down to what a society wishes to have and is prepared to pay for. In most European countries, this means a well functioning train network [/quote]</p> <p>The so-called hidden subsidies that went into air transport and highways have been repaid or are being paid by the users, although in some instances the repayment mechanism has been indirect, and wealthy motorists frequently subsidize less well off motorists. </p> <p>Those who highlight the subsidies for airways, highways, waterways, etc. seemingly overlook the significant subsidies granted to railroads for their construction. In fact, it may be that the present value of the subsidies granted to the railroads trumps those granted to the airways, highways, and waterways because of the time frame. Moreover, under the American Reinvestment and Recover Act (ARRA), the freight railroads have received hundreds of millions of dollars to improve their plant. </p> <p>Those who point to European train networks seem to overlook the financial consequences of building passenger rail systems that do not cover their costs. If the current debt crisis sweeping Europe is not a hint, I don't know what it would take to get the attention of those who espouse using Europe as a model.</p>
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