I think you are ignoring the *and not be a net drain* part of the argument.

Right now we heavily subsidize oil and all its derivatives through general taxation to support our military which supports an aggressive foreign policy intended to secure the supply of oil to the US and much of the rest of the world. Whether or not we should have such a security policy I leave as an exercise to the reader, but it is clear that we do not build into the cost of the oil the cost to secure it. By subsidizing oil we distort the market for everything that relies on oil, and everything that would compete with those market spaces. Furthermore we over use oil and its derivatives with other downstream consequences (paper or plastic?).

Markets work, but as with technology GIGO applies.

Matthew


On May 28, 2009, at 11:15 AM, db wrote:

Why not? Automobiles/ road systems were subsidized for decades in the US as were the railroads earlier and as is your cellphone now. Europe and other countries just don't BS as much about the nature of things / what it takes to make transport systems work and economies go around. They more readily accept and address the real shared costs of the transport capabilities that connect all of us individually ... including the cost of gasoline.

db


Matthew Taylor wrote:
Not at all true in the DC metro area where I live or the NY metro area where I grew up. Lots of people commute on the trains and busses, and whenever circumstances spike ridership they have / had a cash crisis because they don't charge what it is worth. For mass transit to work and not be a net drain it has to be survivable at a market price. Cost shifting is not the answer.

Matthew

On May 27, 2009, at 9:19 PM, Rev. Stewart Marshall wrote:

Again because they aim only at the lower income.

If they aimed at a higher income they would make money.

That is what I meant about neighborhoods not served.

In Europe their public transportation does not just aim at one socio economic strata. It serves all.

In Canada (One I am again familiar with) they aim at all socio economic strata. From Go Trains to street cars to buses and trains serving many different areas.

Some of it is profit making some not, but since they serve a wider area, they can subsidize the unprofitable with the profitable.

Like I said aim public transportation to folks above the poverty line and serve them and it will make money.

Stewart

At 08:02 PM 5/27/2009, you wrote:
No, volume hurts most public transit because the cost to serve
additional passengers is greater than the revenue received from those
passengers.  Yes, you can make a bit more if you are filling mostly
empty busses and train cars, but when you need to expand service to
need greater demand you will loose money if the increase in demand can not generate sufficient revenue to pay the cost of expanded service.
It is very simple math.

Public utility models assume that on average every user covers their
costs.  Public transit in the US typically does not.

Matthew

Rev. Stewart A. Marshall
mailto:popoz...@earthlink.net
Prince of Peace www.princeofpeaceozark.org
Ozark, AL  SL 82


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