Tuesday, January 10, 2012

Why Do We Subsidize Roads But Expect Profits From Amtrak?

Amtrak's Capitol LimitedFederal, state & local governments spent nearly $193 billion on highways in 2008, recouping only about $30 billion of that in toll revenue. That means highways lost $160 billion, money we spent with no expectation of ever getting it back.

Yet when Congress spends a little over $1 billion on Amtrak, why do Republicans expect it to turn a profit?

If Amtrak is expected to turn a profit, shouldn't highways be expected to do so as well? Why should Amtrak be asked to compete on an uneven playing field? It's like asking Starbucks to turn a profit if Dunkin Donuts is handing out free coffee next door.

3 comments:

Brian said...

Because the vast majority of us have decided that we prefer to travel by car than rail. It's a situation where the Government serves its citizens pretty well.

TheGreenMiles said...

Brian, if driving individual vehicles is so beloved, shouldn't it be able to stand on its own two legs against train travel without a $160 billion subsidy?

Brian said...

Why do you assume that it couldn't? Ike changed the way we finance roads, but that doesn't mean that we wouldn't build them otherwise.

Further, you can't deny that Americans love driving individual vehicles. The last 100 years clearly demonstrate that. Government is responding to the desires of citizens. If people wanted to travel by train, the government would subsidize that form of travel more than it does.