SwingingTheLamp, 10 months ago

Just to pick on one point, as a tangent, the government paying for roads with little cost to the freight carriers is a major, major problem. If the cost of transport is not factored into the cost of goods, it breaks the feedback mechanism of prices in the market affecting the supply of road transport, both per se, and in relation to other, possibly more efficient, means of transport. I came up with a reductio ad absurdum scenario to illustrate better: Imagine the government provided free air freight across oceans, without limit.

It’s pretty obvious what would happen: The logistics companies would abandon cargo ships, which cost them money, for the free air service. It would be horribly inefficient and wasteful, but that would not be their concern. We’d end up in the same situation that we are today with roads; our governments are going broke trying to pay for it. (In that world, I also imagine that people consider the service the normal baseline that they’ve structured their lives and businesses around, and can’t fathom ending it, just like roads in our world.

Anyway, passenger rail service has never been profitable. Railroads just operated passenger trains as a condition of being allowed to operate freight routes, which the government had subsidized with land giveaways. The question is whether passenger is more sustainable fiscally than roads for personal vehicles, and the survival of rail freight against massively subsidized road freight suggests that it would be. At least for longer, intercity routes.