"Randal O’Toole: Well, there’s a recent story that – unfortunately it
wasn’t in the Onion but it was an authentic story in the Los Angeles
Times that said despite the fact that we’re spending billions of dollars
on transit, transit ridership is declining and that’s true here in
Washington DC as well. Transit ridership seems to have peaked about just
before the financial crash and it’s not really recovering since the
financial crash.
Really transit has been on a downhill since 1960
or 1950, the end of World War Two. What we’re seeing is people plowing
more and more money into it and productivity is going down. The number
of transit riders carried per transit worker is steadily declining.
The
amount of money we spend to get one person out of their car has gone
from a dollar in 1960 to $25 or more today just to get one person out of
their car for one trip. We build transit lines that are so expensive
that it would have been cheaper to give every single daily round trip
rider on that transit line a new Toyota Prius every single year for the
rest of their lives than to keep running that …
Trevor Burrus: I’m laughing and crying at the same time.
Randal
O’Toole: And there are a lot of forces at work here. It started out in
the 1970s. Congress had given cities the incentive to take over private
transit. In 1965, almost all transit in America was private. By 1975, it
was almost all public. Congress had said to cities you take over
transit. We will pay for your new buses. We will pay for your capital
costs. You just have to pay the operating costs.
So cities took
them over and then in 1973, congress said, “Oh by the way, if you have
an interstate freeway that’s planned in your city and you decide to
cancel it, you can take the capital cost of that freeway and use it for
transit capital investments.” Well, cities thought that was great except
for buses are so cheap that they couldn’t afford to operate all the
buses that you could buy for the cost of an interstate freeway.
So
then the mayor of Portland came up with an idea. Let’s build a light
rail line. That’s really, really expensive. That will absorb all the
costs of the freeway even though it’s only going to carry about a tenth
of as many people as that freeway. It will absorb all that cost and it
won’t cost that much more to operate than a bus. So we will be able to
use that money and I won’t be accused of costing the region jobs because
we’re not building that freeway because we’re building the light rail
instead.
Well, what happened was that created – that transformed
the transportation and construction industry. Almost everybody in the
industry who was building roads could easily transform into building
light rail. So they didn’t care whether they were building roads or rail
or what. They just wanted to build something and if people wanted to
build rail, that was fine with them and they became a lobby for rail.
People have talked about the highway lobby. Today the rail construction
lobby in Washington DC is ten times richer than the highway lobby in
Washington.
Trevor Burrus: Do any of these light rails pay for themselves?
Randal
O’Toole: No. First of all, no transit – public transit pays for itself
simply because it doesn’t have to because they’re all drawing on
government money. There are a few transit systems in this country that
do pay for themselves because they’re entirely private. They don’t get
any subsidies. One is the Atlantic City Jitney. One is the New York
Waterway. It’s a ferry system in New York City between New Jersey and
Manhattan.
One is the publico, a jitney system in San Juan, Puerto
Rico. Actually carries more people than the public transit system that
was subsidized and encouraged more passenger miles. There are private
transit systems in some cities that don’t regulate private transit
operations that compete against public transit and do so very
effectively. Most cities however made it illegal to compete against the
public transit agency so they can just raise their costs with impunity
and charge at the taxpayers. Transit cost them – transit on average,
four times as much to move a person one mile as it does to drive a car
that mile. Rail transit is far, far more expensive than bus transit and …
Trevor
Burrus: I mean a bunch of politicians choosing a bunch of options that
are super expensive and bad at their job. I mean this wouldn’t be the
first time this has happened. But it’s so bad. You have to wonder like
why this is even – I mean light rail. When I’m home in Denver, I see the
light rail cruise by and let’s say there are about seven people on it
and I wonder how much it costs to just take these seven people, this
length of – why are they doing that? I mean it’s just crazy …." - Transportation, Land Use, and Freedom, libertarianism.org, 02/26/2016
Link to the entire article appears below:
http://www.libertarianism.org/media/free-thoughts/transportation-land-use-freedom
Working from the fringes of Greensboro politics and development to build a brighter future for Greensboro into the 21st Century and beyond.
Friday, April 1, 2016
Mass Transit: Once Again, With Politicos Involved, Not All Is As It Seems
Labels:
government as a delivery system,
government as a monopoly,
Mass Transit,
Randal O’Toole,
rent-seeking,
the seen and the unseen,
W.E. Heasley
BS Economics, cum laude, Private and Public Sectors, 1979, West Virginia University, Morgantown, WV.
Undergraduate Minor in General Insurance.
Chartered Life Underwriter (CLU), Huebner School of Economics, American College, 1992, Bryn Mawr, PA.
Life Underwriter Training Fellow (LUTCF), 1986, National Association of Life Underwriters, Washington D.C..
Currently enrolled and completed one half of Chartered Property and Casualty Underwriter (CPCU) from the American College.
42 years insurance industry experience.