Benefits & Costs Benefits of Autonomous Cars

A new study estimates that self-driving cars will save the United States more than $300 billion per year. The study adds up the costs of traffic accidents and assumes that self-driving cars will reduce accidents by 90 percent. That’s optimistic, but the study doesn’t even count the savings due to congestion relief, increased productivity while traveling, and the reduced cost of delivering goods and services.

On the other hand, one analyst estimates that self-driving cars will “wipe out 4 million jobs.” A taxi- and limo-driver lobby group has already begun to lobby the New York legislature to protect jobs by banning self-driving cars.

This is where it is important to understand the difference between benefits and costs. Jobs are not a benefit; income is the benefit. Jobs are costs: if more income can be produced with fewer jobs, everybody gains. That includes the people whose jobs are lost because–at least if the society is reasonably mobile–they can find better jobs instead, paid for out of the money people saved by reducing costs.

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Is Dallas-Houston High-Speed Rail Viable?

One of the projects on the supposed Trump infrastructure priority list (which, I am 90 percent convinced, is not an official Trump administration list) was a Dallas-Houston high-speed rail line. When the Antiplanner called this project a boondoggle, I received an email from a supporter saying it will be entirely privately financed. While that would alleviate my objections, I remain skeptical that it could work.

The Texas Central project is backed by the Central Japan Railway and proposes to use Japanese high-speed rail technology in the 240-mile corridor from Dallas to Houston. Trains would make only one stop between those two cities, making the journey in 90 minutes at top speeds of around 200 miles per hour.

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Confusion about Infrastructure

The Christian Science Monitor thinks that the Democrats wrote their infrastructure plan as a “political bridge to President Trump.” Fox News thinks that Trump might “get on board” the Democrats’ plan. Statements like these show that many reporters–and by extension members of the public–haven’t yet figured out the real issues behind the infrastructure debate.

As Business Insider points out, there’s a bigger difference between the two sides over “how it’s paid for” than “what gets built.” The Democrats want the federal government to spend a trillion dollars, money it would have to borrow. Trump wants private investors to spend their own money. Never the twain shall meet.

But Business Insider doesn’t understand how Trump’s idea will work. If Trump is going to rely on the private sector, it says, then only projects that generate revenue will be built because “projects that don’t generate revenue for the private sector generally don’t get financed.” But there are two kinds of public-private partnerships. The kind that Business Insider is writing about is called demand risk because the private partner takes the risk that tolls, fares, or other user fees won’t repay the cost.

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Competing Infrastructure Plans: Trump vs. Democrats

Senate Democrats have proposed an infrastructure plan that calls for $1 trillion in federal deficit spending. In detail, the plan calls for:

  • $100 billion for reconstructing roads & bridges;
  • $100 billion to “revitalize Main Street,” that is, subsidies to New Urbanism and affordable housing;
  • $10 billion for TIGER stimulus projects;
  • $110 for reconstructing water and sewer;
  • $50 billion for modernizing rail (Amtrak and freight railroad) infrastructure;
  • $130 billion to repair and expand transit;
  • $75 billion for rebuilding public schools;
  • $30 billion to improve airports;
  • $10 billion for ports & waterways;
  • $25 billion to improve communities’ resistance to natural disasters;
  • $100 billion for a next-generation electrical grid;
  • $20 billion for broadband;
  • $20 billion for public lands and tribal infrastructure;
  • $10 billion for VA hospitals;
  • $10 billion for an infrastructure bank;
  • $200 billion for “vital projects” that “think big” such as building “the world’s fastest trains.”

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Interlude
Most Europeans Don’t Ride Transit Either

Contrary to popular belief, Europeans don’t ride transit a lot more than Americans. In fact, most rarely use transit.

Conventional wisdom holds that Americans drive cars while Europeans ride transit and intercity trains. In fact, while there are some differences in travel habits, differences in rail and bus travel are a lot smaller than most people believe.

In 2009, the European Union published a Panorama of Transport that compared passenger and freight transport between members of the European Union and several other countries, including Japan, Norway, Switzerland, and the United States. Page 100 shows 2006 data for the EU-27 (the 27 members of the European Union at that time) and the United States. For accuracy in the table below, I extended the data to more significant digits by dividing total passenger kilometers by 490.0 (for the EU-27) and 301.3 (for the US).

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Reason #8 Most Americans Don’t Ride Transit
Life Is Complicated

Transit works best going from point A to point B if you happen to be near point A and want to get to point B. Transit doesn’t work well for trip chaining, going from point A to point B via points C, D, and E. Because life is complicated and people don’t want to spend all their time traveling, trip chaining works best in an independent vehicle such as a car.

On your way to work, you might want to drop off your kids at school or daycare, drop off your suit at the laundry, and get a cup of coffee. On your way home, in addition to picking up the kids and laundry, you may want to go grocery shopping. This is called trip chaining, and it is a lot easier to do in a car than by transit. (Yes, there’s probably a Starbucks next to your transit stop, but your transit agency probably doesn’t allow you take beverages on board.)

Some analysts wonder whether people choose to drive because they want to trip chain or if they trip chain because they have cars. But this is the wrong question. The reality is, life is complicated, and cars do a better job of helping people deal with that complexity.
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Reason #7 Most Americans Don’t Ride Transit
It Doesn’t Carry Freight

Carrying large packages, suitcases, or shopping bags on transit is awkward at best and impossible at worst. Anyone who expects to travel with such cargo, even if only some of the time, will do best with a car.

In 2007, Ikea opened its first store in Portland. It is 280,000 square feet, has around a thousand parking spaces, and is near a light-rail station. How many people who plan to do more than just window shop do you imagine carry their purchases home on the light rail?

Drag right to see the Cascades light-rail station, which is much further from Ikea than any of the parking spaces.

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Reason #6 Most Americans Don’t Ride Transit
Transit Infrastructure Is Crumbling

Rather than maintain transit systems in a state of good repair, the transit industry has chosen to build more transit lines that it can’t afford to maintain. Transit riders respond to delays and dilapidated transit by finding other methods of travel.

The Department of Transportation’s latest assessment of the nation’s transit systems found an $89.8 billion maintenance backlog. Moreover, the backlog is growing by $1.6 billion a year, because rather than fix transit systems, transit agencies are building more.

To eliminate the backlog in 20 years, the report calculated, every single dollar now being spent on transit improvements must be transferred to maintenance and preservation. Alternatively, the industry must find at least $5.8 billion in new subsidies each year (see page Roman numeral L).

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Reason #5 Most Americans Don’t Ride Transit
Our Cities Aren’t Built for It

Housing, jobs, and other destinations are so diffused throughout American urban areas that they don’t generate the large numbers of people moving from one point to another that mass transit systems need to work.

“Transit worked when American cities were denser,” is the mantra of today’s urban planners. “If we can increase their densities, transit will work again.” Reality is a lot more complicated, and that reality explains why transit can’t work in American urban areas even if their densities increase.

From about 1880 to 1913, transit and cities co-evolved thanks to new technologies that benefited both. The same steam engines that powered commuter and early rapid transit trains also powered downtown factories. The same Bessemer steel that made the rails that streetcars and urban trains rolled upon also provided the structural beams that allowed construction of skyscrapers. The same electric motors that moved electric streetcars also powered electric elevators that gave people quick access to the upper floors of those skyscrapers.

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Reason #4 Most American’s Don’t Ride Transit
Lack of Privacy and Security

Compared with the aura of security offered by riding inside of an automobile, many people avoid transit because they feel vulnerable and threatened by other riders.

Crime, sexual harassment, and other invasions of privacy are common on metro systems throughout the world. Sexual harassment is especially bad on Tokyo subways, and a survey of 600 women transit riders in Paris found that 100 percent of them reported having been sexually harassed.

Such harassment often depends on the anonymity that comes with extreme crowding, but most American transit systems don’t get that crowded precisely because Americans won’t accept the invasions of personal space required for such crush conditions. Still, there are numerous complaints of sexual harassment on the New York City subway. Crime is rapidly rising on the DC Metro as well.

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