Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

WSJ: The Little Engine That Shouldn't (Amtrack burns billions in subsidies)
Wall Street Journal ^ | July 7, 2005 | Editorial

Posted on 07/07/2005 6:05:48 AM PDT by OESY

Ronald Reagan once described Amtrak as a "mobile money burning machine." Since then another $15 billion of taxpayer subsidies have gone up in smoke. Now the allegedly tight-fisted Republicans in Congress are poised to toss Amtrak its seventh emergency bailout, this time $1.2 billion to keep the trains running next year.

...All of this money for a train service that doesn't reduce traffic congestion, doesn't cut pollution levels, doesn't save energy, and isn't integral to inter-city travel, because so few people ride the trains.

We're not against trains; they can be a great way to see America. But Amtrak has poorly served customers and taxpayers alike and is arguably the nation's worst-run commercial enterprise. It loses $1 billion a year ($45 per rider) and that doesn't include some $10 billion in deferred maintenance costs. Every route run by Amtrak loses money, and some are horrendously unprofitable....

Meanwhile, the $3 billion high-speed Acela trains on the Northeast Corridor, which were promised to be the financial savior of the railroad, have also been losing money, and are now shut down for several months because of faulty braking systems on the locomotives.

The good news is that there's no law of economics that train service has to lose money -- although it's a pretty sure bet that a train run by the government will. A Congress serious about fiscal restraint would privatize Amtrak, lift its indefensible monopoly status as the sole provider of rail passenger service in America, and let the market determine where and how train service can operate in the black.

The Bush administration took a modest stab at reform by proposing that any new money be contingent on cutting costs. Instead the GOP House agreed late last month to dole out $1.2 billion more in subsidies....

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Editorial; Government; News/Current Events; Politics/Elections
KEYWORDS: amtrack; amtrak; bush; mineta; rail; subsidies; taxpayer; transportation
Train service is too important to be left to government bureaucrats. Veto the bill, and privatize the service!
1 posted on 07/07/2005 6:05:50 AM PDT by OESY
[ Post Reply | Private Reply | View Replies]

To: OESY

Where do we write on this one? Seems to me competition would be the best answer.


2 posted on 07/07/2005 6:08:31 AM PDT by kharaku (G3 (http://www.cobolsoundsystem.com/mp3s/unreleased/evewasanape.mp3))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Senator Kunte Klinte
President Bush will never get credit for unifying America or changing the tone in Washington by not vetoing bills. Rather, he could strengthen his hand by showing he has the courage to veto a bill occasionally, whether it be an Amtrack bill, a bloated budget bill, or an ill-considered bill on global warming.


3 posted on 07/07/2005 6:16:54 AM PDT by OESY
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY

Michael Stanley Dukakis was nominated by President Clinton for a five year term as a member of the new Board of Directors of Amtrak, The National Railroad Passenger Corporation on May 21, 1998 and was confirmed by the Senate on June 25, 1998. He currently holds the position of Vice-Chairman of the Amtrak Reform Board.


4 posted on 07/07/2005 6:20:51 AM PDT by N. Theknow (If Social Security is so good - why aren't members of Congress in it?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
Amen to that.

And BTW: Mike "PeeWee" Dukakis is in it's top management, which explains a lot why money is wated there... he's probably assigning Soc Sec #'s to passengers as well.

5 posted on 07/07/2005 6:22:03 AM PDT by theDentist (The Dems have put all their eggs in one basket-case: Howard "Belltower" Dean.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY

Instead the GOP House agreed late last month to dole out $1.2 billion more in subsidies....
Democrats and Republicans; different shades of the same color.


6 posted on 07/07/2005 6:26:27 AM PDT by kublia khan (total war brings absolute victory)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY

The train from Wawa, Ontario, Canada, to Sioux Lookout did passenger service correctly.

The engineer would let you sit up front in the engine and drive (Drive is what do in a train engine, right? I don't know.)

If a passenger wanted to get out and pick blueberries or go fishing, the train would stop wherever you wished. Then you could flag the train down as it made its way back to get picked up.

Drinking your beverage of choice was encouraged.

Occassionally the local Indians would shoot arrows at the engine, although I witnessed no such incidents while a passenger.

My one idea to improve the trip would be allowing passengers to shoot moose from the train and barbecue it in the caboose. The conductor didn't care for the suggestion because the caboose was made from wood and the wood burning stove was quite small. More suited for frying chipmunks chunks than barbecuing moose steaks.

I believe if you offer interesting activities on trains, passengers will pay the price.


7 posted on 07/07/2005 6:31:20 AM PDT by sergeantdave (Marxism has not only failed to promote human freedom, it has failed to produce food)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sergeantdave

The fares are absurd. West Palm Beach to Miami airport $7.00. The next choice was a bus at $100,00. To SC $36 vs, airfare $400.


8 posted on 07/07/2005 6:33:37 AM PDT by ClaireSolt (.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: OESY

All the private passenger lines have long gone out of business because of the shift towards airline travel (more expensive but much quicker) and the private automobile (much more reliable and comfortable than 50 years ago). I very much resent having to subsidize every single Amtrak passenger just because of some stupid romantic ideals of some idiots in Congress.


9 posted on 07/07/2005 6:37:30 AM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
THere is one small corridor on the east coast that might actually be cost-effective to run. The DC to NYC trains actually carry a fair amount of traffic. Congresscritters and their support staff like this line. That's why amtrack will never be defunded. It doesn't matter how much it costs the rest of the country, as long as the transportation needs of the roaches in washington are cared for.
10 posted on 07/07/2005 6:44:09 AM PDT by zeugma (Democrats and muslims are varelse...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: zeugma

Don't forget the Unions..the rail employees have the most stupid union rules I have ever seen...the trains are ALWAYS late..and half the time they do not know where they are...I live In Denver and we have one twice a day...


11 posted on 07/07/2005 6:54:07 AM PDT by Youngman442002
[ Post Reply | Private Reply | To 10 | View Replies]

To: Youngman442002

The only reason Amtrak is still in service is for the NE liberal elite to commute to Washinton. Then they have the temerity to by Acela trains from outside the US.

I wonder if we can give Massechusettes back to England.


12 posted on 07/07/2005 7:01:42 AM PDT by EQAndyBuzz (Liberal Talking Point - Bush = Hitler ... Republican Talking Point - Let the Liberals Talk)
[ Post Reply | Private Reply | To 11 | View Replies]

To: OESY
"Train service is too important to be left to government bureaucrats. Veto the bill, and privatize the service!"

A great idea if it would actually work. Unfortunately, public mass transportation is a money loser. The airlines are another perfect example of a subsidized system (airports, air traffic control, security) that is a money pit. Even prior to 9/11, airlines were bleeding red ink (United, U.S. Airways). While private enterprise may naturally produce a better operating model than an all-government bureaucracy such as Amtrak, it can also wisely just say "No Thanks, I'm putting my Money in Google".

The choice for long distance travel really comes down to WHICH money sucking transportation system are you willing to subsidize. My guess is that most people won't be willing to sit on a train for 3-days to travel from New York to Los Angeles given the choice. The only thing that may change this is when the price of a barrel of oil hits $120, and a coast-to-coast super-saver fare on an airplane is $1600.
13 posted on 07/07/2005 7:19:06 AM PDT by indthkr
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY

How much money do the feds pour into roads for OTR trucks? How much money goes into airports, air traffic control, and security? Yet, the WSJ pisses and moans that the railroads are "subsidized" when they are supposed to operate and fund maintainence-of-way their trackbed solely on operating revenues? Pull federal dough for highways and air travel and see how long they last.


14 posted on 07/07/2005 7:24:32 AM PDT by Luddite Patent Counsel (Theyre digging through all of your files, stealing back your best ideas.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY

"Train service is too important to be left to government bureaucrats. Veto the bill, and privatize the service!"

Don't hold your breath! As long as socialist Senators like Biden and Schumer famously use this service to commute back and forth, the funding is secure.

Hell, we couldn't even clip Big Bird's wings!


15 posted on 07/07/2005 7:40:17 AM PDT by Stand W (Durka Durka Mohammad Jihad Jihad Jihad)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Luddite Patent Counsel

Of course the trucks help pay for the roads (gas and tire taxes, plus all of the various state tags)


16 posted on 07/07/2005 11:35:36 AM PDT by kaktuskid
[ Post Reply | Private Reply | To 14 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson