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Subsidizing Failure
Liberty Call US, Deck Log ^ | July 7, 2005 | Liberty

Posted on 07/07/2005 10:31:37 AM PDT by Gunner9mm

July 7, 2005

Subsidizing Failure

Did you know that Amtrak loses $1Billion (that Billion, with a capital B) each year? Did you know that Amtrak has a government imposed monoply on rail passenger service? Did you know that Amtrak spent $3Billion on its high speed Acela trains that are now out of service due to faulty brakes? Did you know that Amtrak is deferring $10Billion in maintenance costs?

Would any reasonably intelligent person invest money in any other company that was such a miserable failure? Of course not. Then why is the government forcing the American public to pour more of our tax dollars into this black hole -- to the tune of $1.2Billion this year? That $1.2Billion is in addition to the $15Billion of your tax money that Amtrak has already consumed.

It is time to privatize Amtrak and eliminate its monoply on rail passenger service. Let Amtrak sink or swim. The taxpayers of America should not be required to subsidize the tickets of hot shot businessmen that zoom between New York and Washington, DC. Let them pay full fare.

Liberty


TOPICS: Business/Economy; Government
KEYWORDS: amtrak; monoply; rail

1 posted on 07/07/2005 10:31:39 AM PDT by Gunner9mm
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To: Gunner9mm

"Would any reasonably intelligent person invest money in any other company that was such a miserable failure?"

The government has provided subsidies for crop farmers, dairies, the auto industry, the airline industry and many other industries. Why should the rail industry be any different?


2 posted on 07/07/2005 10:37:12 AM PDT by politicalwit (USA...A Nation of Selective Law Enforcement.)
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To: Gunner9mm
Government has a legitimate role to play in the development of transportation infrastructure.
However, perhaps our rail infrastructure could more closely resemble our Interstate highways. Government would "own" the actual railway, being responsible for its upgrade and maintenance. However, private enterprise would own and operate the rolling stock, paying a fee to the government for use of the track. (Much like trucks pay to use the highways.)
3 posted on 07/07/2005 10:44:53 AM PDT by Willie Green (Some people march to a different drummer - and some people polka)
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To: Gunner9mm

Once we had a railroad down here. It was abandoned back in the 50's. The rail right of way stood there for years grown up and ignored, Then the county bought the right of way with the understanding that some day we would have a fast rail commuter train on it. That wasnt a bad move,but then the county decided to sell the rails for scrap, the rails and ties were removed, and people started using the right of way for drivewyas, short cuts and a few got easements to put parking lots and power substations on it. Now we have no right of way whats left of it isnt any good because the other parts are gone.

One day those right of ways for Amtrak will be invaluable. Until that day the subsidy we pay keeps them for the future.


4 posted on 07/07/2005 10:58:28 AM PDT by sgtbono2002
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To: politicalwit

It shouldn't. All the subsidies you mentioned should be ended immediately. Pointing out other injustices does not excuse the one injustice.


5 posted on 07/07/2005 12:19:59 PM PDT by coloradan (Hence, etc.)
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To: coloradan

" All the subsidies you mentioned should be ended immediately. Pointing out other injustices does not excuse the one injustice."

Oh I agree...just pointing out that our government dispenses our tax dollars without consideration to those that contribute those dollars.


6 posted on 07/07/2005 12:29:15 PM PDT by politicalwit (USA...A Nation of Selective Law Enforcement.)
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To: Gunner9mm
Let someone buy it. I would love to ride a train and not deal with airport crap. Lots of boomers agree. They're tired of airport lines, but trains suck. Put trains in private hands with someone who wants to create a pleasant trip, and profits will soar.

Amtrak has all the efficiency of a drivers license office without the charm. We can do better.

7 posted on 07/07/2005 12:54:53 PM PDT by GOPJ
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To: sgtbono2002
One day those right of ways for Amtrak will be invaluable. Until that day the subsidy we pay keeps them for the future.

Actually, Amtrak owns very little of the rail system. The freights own and control them, charge Amtrak to use them, and cause many of the delays.

8 posted on 07/07/2005 3:41:21 PM PDT by sharkhawk
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To: Willie Green
Government would "own" the actual railway, being responsible for its upgrade and maintenance. However, private enterprise would own and operate the rolling stock, paying a fee to the government for use of the track

I like this potential model a lot. Having crossed the country by rail in the past, I found it a fascinating and relaxing way to see the country and also get somewhere. Time well spent. I cannot believe that a privately run, well capitalized, modern passenger-oriented railroad could not make a profit, using government maintained rights of way for a reasonable fee.

9 posted on 07/07/2005 8:15:49 PM PDT by hinckley buzzard
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