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Should Amtrak receive more federal funding?

Results so far:

Yes
46% 42 votes Total: 91 votes
No
54% 49 votes
Yes

We need to provide more help to Amtrak, not less. It is a matter giving people a choice for their transportation needs. Trains reduce our consumption of foreign oil. They take cars off the roads and reduce pollution and congestion. Properly run they are efficient and reliable, in almost any weather. Most of us, particularly anyone who has been to Europe or Japan, where the rail systems are run effectively, would not argue most of the above points. What many do argue is whether we should subsidize Amtrak with tax revenue.

Almost no national transportation system anywhere makes a profit. In the United States, the airlines get about $16 billion dollars every year in taxpayer subsidies, without which they likely wouldn't be profitable either. After 9-11, the airlines got an additional $30 billion to offset their business losses. Keep in mind that the airlines are for-profit businesses. Their CEOs can make huge salaries which you help pay, whether you fly with them or not. Some airlines have declared bankruptcy, sticking shareholders and employees with stock losses, then reorganized and gone right back in this subsidized business. The road system gets about $30 billion per year, which is an indirect subsidy of trucking companies and bus lines. Conversely, Amtrak needs only $2 billion per year to maintain current levels of operation and make some improvements.

About 60,000 people ride Amtrak daily, most of them on commuter lines. Without Amtrak and other commuter lines, like the Long Island Railroad, places like New York would be nearly impossible to commute to work. The inter-city or cross-country trains provide transportation to many small cities that either do not have an airport, or have expensive airline ticket prices. For those who have the time, or prefer a more leisurely trip, cross-country passenger trains are a nice option. In times of national emergency trains can move personnel and equipment almost anywhere, in any weather.

There is one section of Amtrak's routes that does well financially, provides fast, reliable service, and is heavily used the Northeast Corridor, from Washington, D.C. to Boston. One reason for this is that this is the only part of the country where Amtrak owns the track. Not coincidentally, it has the faster, newest trains running on those tracks. You can get from downtown Washington to downtown New York faster than flying.

In other areas, freight lines own the track. Too many times on these routes, the passenger trains are shunted to the side to wait for slow freight trains. This results in many delays. I once took a train from Chicago to New York and arrived ten hours late because of this. The city of Phoenix, Arizona, the nation's sixth largest city, does not have a single passenger train pass through it. It has a nice station right in the center of the city, unused. The nearest Amtrak station is now in a small town 30 miles to the south. The reason? Southern Pacific Railroad Company owns the track and didn't want to be bothered with "people trains."

The underlying issue for many who say "no" to help for Amtrak, is that you aren't willing to subsidize something you don't use. Voters in Phoenix, Arizona, though, recently approved a tax hike that, in part, added more weekend bus service. Not all of these bus routes make a profit, but the people who use them depend on the service. Most people who don't have children in school still pay a school tax. You likely pay a county tax that maintains roads you will never drive on. There are many more examples, but the issue is whether some things are services we all should chip in to support, whether or not they benefit us directly.

If everything had to make a profit, or if only those who use a service should pay for it, what would that look like? Every road would be a toll road? Public school kids would pay tuition? Airline tickets that now cost hundreds would cost thousands? No taxpayer support for frivolous things like museums or orchestras? This doesn't seem like the kind of society most of us would want.

Finally, there is a regular political battle in Washington over Amtrak. Both of my U. S. Senators have written me about this and they say the same thing. They say that the law that created Amtrak required it to make a profit and it does not. True enough. It is also true that the airlines don't want increased competition from railroads. It is true that CEOs and lobbyist groups give money to Congressmen, on behalf of the airlines, which of course, the good Congressmen use frequently.

However, many Congressmen who oppose funding Amtrak will say that we should break off the Northeast Corridor and keep that service, and let the rest of the country's passenger rail go out of business. Not coincidentally, the fast, new Acela trains, especially from Washington to New York, are heavily used by Congressmen, Senators, lobbyists and even an airline executive or two. Go figure.

But for all the above reasons, I asked my Senators to support not only the existence of Amtrak, but its expansion. One way would be to find a way to give passenger trains the right-of-way on the tracks, to improve on-time performance. Many other countries with good rail service have nationalized the railroads, but I don't think that would happen here yet. Another way is to support S.294, The Passenger Rail Investment and Improvement Act, which passed the Senate and is now in the House. If you want to show support for passenger rail service, you can ask your Representative to support S.294. You could also join an organization like the National Association of Railroad Passengers. And you could take a train trip sometime. One of the best is the Coast Starlight, from Los Angeles to San Francisco and on to Seattle. Yes, it takes more time, but sometimes a slower, less stressful pace is a good thing.

Learn more about this author, Kevin Zahn.
Contact this writer Click here to send this author comments or questions.

No

According to Bryan Caplan, author of The Myth of the Rational Voter, the vast majority of us haven't gotten over a troglodytic aversion to profit. We look at businesses, anyone trying to make money, and say "they are greedy". What people ought to realize is that markets transformed society for the better.

As Ludwig von Mises pointed out, no longer do we, like the animals and like primitive peoples, compete to consume, jockeying socially and fighting physically over scarce resources, but rather, we compete to serve, to meet the needs and satisfy the wants of others. That's how profits are made.

Hence, a few subtleties involving market failures, some of which may apply to local public transportation but none of which apply here, aside, whether or not a service should continue to be provided is best judged by whether or not people will pay for it-when the costs are borne strictly by themselves-in sufficient numbers to make it profitable. For the most part, Amtrak doesn't make the cut, needing a giant Federal subsidy to stay solvent.

Two, perhaps three, sorts of people fight to pilfer the rest of us by diverting tax monies to Amtrak. The first are "railfans", people with a peculiar and obsessive fixation on rail transport, who recreationally photograph and "spot" locomotives and rolling stock in a manner not unlike birdwatching. The second are people who believe that it Would Be Nice if the US had railways Just Like Europe Does, that rail transport is somehow more socially desirable than driving cars or riding airplanes, and who believe that socially desirable things ought to have government subsidy. Limousine leftists, in other words, or at the very least Lexus leftists, they want to divert taxes so there may be trains for the unwashed masses but usually don't ride them themselves. The third are the small group of legitimate train riders so crass as to believe that their particular behavior deserves a subsidy, unlike auto roads (paid for mostly by user-fee-like gas taxes) and unlike air travel, paid for by fares.

We really ought to stop buying into the hype. The railfan hobby clearly doesn't deserve a multi-million dollar subsidy, no more than knitting or birdwatching does. Rent-seeking rail riders need simply be told that they ought to pay their own way like the rest of us.

As for the second group, since "society" is just a ten-dollar word for the aggregate of individuals, whether or not rail is socially desirable ought, again, be judged by whether or not individuals choose it. In most of the country people don't choose Amtrak because distances to travel-unlike in densely packed Europe-are so long as to make airplanes far more sensible, and because destinations even on short hops are so widely spread as to make cars, not fixed to a single line, a better choice. Some routes are, perhaps, exceptions to this, with enough density and enough people going the same way to make rail sensible; these routes could possibly, given proper management, turn a profit when Amtrak is privatized.

That Amtrak service is of low-quality doesn't help the case for Federal funding. In most of the country, the cars are run-down, customer relations is decades behind that of the (post-deregulation!) airlines, and travel delays can amount to days. With a subsidy from the Federal government-with the cost of the ride not borne by riders and business risk not assumed by investors-the incentives that prompt e.g. Southwest and JetBlue to strive for quality service at a competitive price simply do not operate. If the US is to have rail service where it's sensible-and once again, sensibility is gauged by profitability-rail service providers must be exposed to market risk in order to ensure that they serve the customer well.

There are some who say that maintenance of a rail service is a good thing, as it is a backup in case some disaster or supply crunch causes auto or air travel to be prohibitive. That, again, is best gauged by people assuming the risk as investors in the market, not by idle speculators with more in common with science-fiction authors! A supply crunch that increases fuel prices may make rail a competitive alternative to cars, buses, and planes, but we cannot know that for sure. Some individual anticipating or reacting to the crunch will figure it out, assume the risk, and, if he's right, turn a profit.

If he's wrong, that's his fair loss. We have no reason to, year after year, make it ours instead, and it's high time we stop. Amtrak's subsidy ought be eliminated.

Learn more about this author, Bennett Kalafut.
Contact this writer Click here to send this author comments or questions.

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