[Publius]

You are correct in assuming that breaking up a government transportation monopoly -- and the unions that act as parasites on it -- will drive costs down. In fact, thanks to the Internet, a bus company will not even need fixed routes but could simply pick people up based on Internet orders like modern airport van services use. Costs would eventually go down as the large network disintegrated into a group of small capitalistic fiefdoms.

But remember what happened in most major cities even before the unions ruined private transit concerns and pushed for the creation of subsidized transportation authorities. The problems of transferring between competing transit systems eventually led to consolidation as the bigger fish swallowed the smaller fish. By 1911 the Mitten interests in Philadelphia had bought out the smaller street railroads and created the great PRT -- Philadelphia Rapid Transit. Consolidation is a natural part of capitalism, and once that begins and competition decreases, costs will go up.

The point the author wished to make was that getting rid of subsidies for highways would not be fair unless one got rid of subsidies for transit systems too. TANSTAAFL applies to everyone.

[mvpel]

By 1911 the Mitten interests in Philadelphia had bought out the smaller street railroads and created the great PRT -- Philadelphia Rapid Transit.

How much of that was aided and abetted by crony politics and palm-greasing, though, rather than fair-and-square free-market competition?