For more than 40 years, Amtrak has relied on $1 billion or more a year in taxpayer handouts to run slow, and often late, passenger trains. Indeed, the man considered to be the “father” of Amtrak, Anthony Haswell, recently said that he is “personally embarrassed over what I helped to create.”
To join their families for Thanksgiving this week, millions of Americans will face the drudgery of airline travel. Airports are crowded, flights are often delayed, and many travelers will get stuck in long security lines. It may get worse: a new study by the U.S. Travel Association (USTA) says that American aviation may be flying into a storm of “chronic congestion, delays, and frustration.”
An article on page 1 of Thursday’s Wall Street Journal describes the financial problems faced by some private infrastructure owners because of reduced demand from the Great Recession. The story features the Foley Beach Express bridge in Alabama built as a toll concession in the early 2000s. The bridge filed for bankruptcy in July after traffic volumes were lower than projections leaving taxpayers on the hook for millions.
A Wall Street Journal story today begins “America’s road to recovery may face a costly detour due to a fraying transportation network. One in nine of the country’s 607,380 bridges are structurally deficient …”
The importance of infrastructure investment for U.S. economic growth is widely appreciated. But policy discussions often get sidetracked by a debate regarding the level of federal spending. To spur growth, it is more important to ensure that investment is as efficient as possible and that investment responsibilities are optimally allocated between the federal government, the states, and the private sector.
The sudden collapse of a 58-year-old bridge across the Skagit River in Washington state has led to renewed calls to spend more money on American infrastructure. But if that spending comes out of tax dollars rather than user fees and is dedicated to replacing bridges, it will be seriously misplaced.
The federal budget sequester is interfering with the air traffic control (ATC) system and snarling up air traffic. As usual, politicians are pointing fingers of blame at everybody but themselves. But politicians are the ones who have strapped the ATC system to the chaotic federal budget. And they’re the ones who have insisted on running ATC as a bureaucracy, rather than freeing it to become the high-tech private business that it should be.
Transportation Secretary Ray LaHood recently said that “America is one big pothole.” President Obama, members of Congress, and pundits often claim that our infrastructure is “crumbling.” The Senate Budget Committee’s new spending plan, for example, uses that word no fewer than ten times in calling for a $100 billion infrastructure package. And in a report released yesterday, the American Society of Civil Engineers gives the nation a grade of D+ on its infrastructure.
Intercity passenger trains are experiencing a “renaissance” with Amtrak ridership growing “faster than other major travel modes,” says a new report from the Brookings Institution. Indeed, the report continues, Amtrak’s short-distance trains (generally, routes of around 200 to 600 miles) have, on average, a “positive operating balance,” so more such short-distance routes should be added.
The Washington Post’s David Fahrenthold has identified another budget zombie. This time it’s an obscure grant program administered by the Federal Aviation Administration that dumps money on tiny airports with scant activity.