The state of Michigan recently announced record ridership on three routes supported by Michigan taxpayers. Records mean little when the numbers are insignificant.
That, to say the least, is the situation with Amtrak in Michigan. For example, the additional passengers (this year versus last) on the Pere Marquette (between Chicago and Grand Rapids) was small enough to be carried in a once daily round trip by an airport shuttle van. The additional passengers on the Wolverine, which operates from Detroit to Chicago would not have filled a single intercity bus operating each way on a daily basis. The same is true of the Blue Water, which operates between Port Huron and Chicago.
But there’s more. High quality bus service, featuring on-board high speed wireless internet (wi-fi), costs passengers less between Detroit and Chicago and takes about the same time. There is a big difference, however. Train riders are subsidized by taxpayers, while bus riders pay their full fare. Even so, the unsubsidized bus fares are lower than the subsidized train fares.
In a nation that needs to cut spending, unnecessary transportation subsidies, such as for intercity rail services should be at the top of the list.
Comments
43 responses to “Placing Amtrak Records in Context”
Wendell,
I don’t know the comparative economics of this, and hopefully you can explain, but it’s worth pointing out that road and air travel are also heavily subsidized by the government.
Road travel is subsidized through the annual billions in road construction and repairs (though a portion of that is passed onto the public through gas taxes and occasional tolls).
Air travel is subsidized by the fact that substantially all U.S. airports are (locally) government-owned, as well as the the heavy federal investment in security (TSA) and air-traffic control (FAA) infrastructure.
So how are Amtrak subsidies any different? Perhaps rail subsidizes are higher than road or air on a per-rider basis, but if you could spell that out a little more, your argument would be sounder.
I don’t know the comparative economics of this, and hopefully you can explain, but it’s worth pointing out that road and air travel are also heavily subsidized by the government.
And the source of most of those subsidies are the USERS of highways and airspace.
Road travel is subsidized through the annual billions in road construction and repairs (though a portion of that is passed onto the public through gas taxes and occasional tolls).
More than a portion. And in addition to paying for highways, those taxes (on gasoline, highway-use Diesel fuel and tires) also generously subsidize urban transit systems.
Air travel is subsidized by the fact that substantially all U.S. airports are (locally) government-owned, as well as the the heavy federal investment in security (TSA) and air-traffic control (FAA) infrastructure.
Ever heard of federal taxes on aviation fuel and on air passenger tickets?
For some reason, Amtrak patrons don’t pay those taxes.
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