A couple of weeks ago, David Boaz discussed the Old Testament story in which the people of Israel ask Samuel for a king to rule over them. God’s instructions to Samuel can be summed up as “tell them to be careful of what you wish for.” David brought up the passage in the context of civil liberties, but the story’s lesson also applies to economic liberties.
Downsizing Blog
States Shy From HSR Money
The president’s stimulus package contained an $8 billion downpayment on a national system of high-speed rail. The money came with no state matching requirements, which generated state applications totaling $102 billion. When Congress added a 20 percent state matching requirement to an additional $2.3 billion for high-speed rails grants in this year’s budget, state applications only totaled $8.5 billion.
Convoluted Highway Funding
A common theme with federal programs that fund state and local activities is that the distribution formulas are highly complex and politically-driven. The result is that policymakers at the federal and state level are constantly jockeying for more money, while the general public remains largely ignorant as to where the money comes from and how it’s spent.
Amtrak's New Rail Cars
Amtrak has announced that it will spend $300 million on 130 new rail cars, including sleeper and dining cars, for its long-distance trains. The government company’s announcement came with the obligatory statement that the purchase will create 575 jobs. That’s more than $500,000 per job.
Greek Rail and Amtrak
Greece’s fiscal meltdown could be a sign of things to come in the U.S. if we don’t get our own fiscal house in order. The images of Greek unions rioting against desperately needed government reforms bring to mind our own problems with public sector unions.
More Concerns for FAA’s NextGen
A report from the Department of Transportation’s inspector general expresses more concerns about the Federal Aviation Administration’s ability to implement its Next Generation Air Transportation System (NextGen). NextGen is a $40 billion overhaul of the nation’s air traffic control system that would replace old-fashioned radar technology with modern satellite-based GPS navigation.
Amtrak's Financial Shenanigans
In the mid-1990s, Amtrak president Thomas Downs claimed that the perpetually taxpayer-dependent railroad was "on a glide path to profitability." In reality, Amtrak was on a glide path to bankruptcy without continuing taxpayer subsidies.
California's High-Speed Rail Boondoggle
Construction on California’s high-speed rail system is supposed to begin in 2012. But even before the ground is broken, ever-increasing cost projections and inept planning are making this megaproject a boondoggle. One question still up in the air: How much of this boondoggle’s cost is going to be foisted onto federal taxpayers.
Amtrak Delays
The Washington Post takes a look at the state of Amtrak and finds that train delays are a chronic problem. As a Cato essay on privatization notes, Amtrak “has provided second-rate rail service for more than 30 years while consuming more than $30 billion in federal subsidies.”
More Proxmires Needed
Federal politicians launch expensive new programs on a regular basis. With all the adding, it would be nice if policymakers also did some subtracting. But trying to cut programs makes you unpopular with your colleagues and special interest groups. As a result, it is rare to find a member of Congress who seriously tries to kill particular programs rather than just complaining that “Washington spends too much.”
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