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<p>If the people in a representative republic a passenger rail system, it is their option. They should be prepared to pay for it.  Ideally, the users of all modes of transport would pay the full cost of each mode at the price point, i.e. ticket counter, fuel taxes, etc.  This includes intercity passenger rail. However, given the politics of transportation, this is not likely to happen.  So all modes of transportation in most countries will be supported by a complex array of hidden subsidies.  This does not, however, preclude an alternative to the government run monopoly called Amtrak.</p> <p>A better model than Amtrak would be to bid out segments of the system to the lowest effective cost bidder. This is what the Australians did with their most prominent national intercity trains, i.e. Indian Pacific, The Ghan, and The Overland.  With contract renewal hanging over their heads, the contractors have a big incentive to operate a competitive, market oriented, customer focused passenger rail service.  Amtrak has no similar incentive.  All it has to do is pander to the politicians.  </p>
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