Notes from All Over

The Economist published an article claiming that traffic is worse in the United States than Europe and lamenting that the U.S. was not building high-speed rail. Wendell Cox responds with a data-filled article basically showing that everything The Economist said was wrong.

John Charles of the Cascade Policy Institute just published Light Rail, Streetcars & the Myth of “High Capacity Transit,” showing that light-rail has a market share of about 2 percent of travel to so-called transit-oriented shopping areas along Portland light-rail lines and a 20 percent market share to major events such as Trailblazer basketball games and other major events. Curiously, despite the title, he never actually compares light-rail capacities with bus capacities. “Light rail” is not short for “light-weight rail” but “light-capacity rail”; a bus lane can move far more people per hour than a light-rail line, which is why light rail makes no sense anywhere in the world unless your goal is to waste a lot of money.

This is especially true in Portland where short blocks limit trains to just two cars. Moreover, four Portland light-rail lines–to North Portland, the airport, Gresham, and Clackamas–must all cross the Steel Bridge, which can only handle 30 trains an hour each way. That means most of these lines will get just eight trains an hour; at 300 people per train, that’s just 2,400 people per hour. A bus lane can move ten times that many people (600 buses per hour times 40 people per bus) without even requiring any of the passengers to stand in the aisles.

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Building Micro-Homes in Portland

Okay, it is one thing for someone who wants to live within a block of Central Park to pay $700 a month for a 90-square-foot “apartment.” But now a major homebuilder, D.R. Horton, is building 364- to 687-square-foot micro-homes in Portland.

“You can’t just keep going farther from the city and acquiring farm land,” says Portland advertiser Jim Beriault. Well, actually, you could if it weren’t for that pesky urban-growth boundary. Oregon (which is 98-percent rural) has plenty of land, and there are plenty of urban areas that are much bigger than Portland.

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Whitest City Gets Whiter

Portland should change its motto from “the city that works” to “the city that’s white.” Already the whitest big city in America in 2000, the city has gotten whiter still as poor people have been pushed from the inner city into the suburbs, as shown in this stunning series of maps.

The Antiplanner has covered this issue before, but it is worth repeating, partly because of The Oregonian‘s excellent coverage yesterday and partly because of what The Oregonian didn’t say. As Portland’s only daily paper pointed out, the city did little to help low-income minorities and did many things that hurt.

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Federal Transportation Subsidies

Per passenger mile, federal subsidies to Amtrak are 30 times greater than federal subsidies to airlines and 500 times greater than federal subsidies to intercity buses, according to a new study from the American Bus Association. The study also reports that federal subsidies per passenger mile to public transit are 3,200 times greater than federal subsidies to autos.

The report, written by economist Robert Damuth of Nathan Associates, compared federal outlays for each mode with excise taxes collected from highway users and air travelers. It also apportioned costs to users such as auto drivers, intercity buses, and commercial airlines.

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The Rights of Mother Earth

Here‘s a great way to bring about the collapse of civilization: declare that Mother Earth has equal rights with humans and give anyone standing to represent Mother Earth in court in challenging any activity by anyone else. In practically no time, the gears of industry would grind to a halt, agriculture would shut down, and the resulting problems would no doubt be blamed on greedy capitalists.

So of course the United Nations is apparently considering a proposal to do just that. This proposal was brought before the United Nations by Bolivia, which is about to pass its own Mother Earth law. This law gives Mother Earth the right to life, diversity (good-bye agriculture), water (good-bye industry), clean air (good-bye cities), equilibrium (good-bye science), and pollution-free living (good-bye just about everything).

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Federal Budget Outlook

Republican and Democratic responses to Standard & Poor’s negative outlook on the federal debt are so predictable they could have been scripted years ago. Democrats want to address the deficit by soaking the rich; Republicans want to cut supposedly vital programs such as Medicare and Planned Parenthood.

The problem with soaking the rich, as economist Kurt Hauser points out, is that it doesn’t increase overall revenues. As the above graph from American Thinker shows, since World War II, tax rates on the wealthy have ranged from 25 percent to 90 percent, yet total tax revenues have never varied much from 19 percent of GDP. As Reason’s Nick Gillespie emphasizes, the lesson is that, if you want to eliminate the deficit, you have to reduce spending to 19 percent of GDP.

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Mixed Messages from Fortune Magazine

On March 29, Colin Barr, a Fortune magazine financial writer, argues in a blog post that “housing prices will keep falling.” Just two weeks later, the cover story of the April 11 Fortune proclaims the “return of real estate” and says “it’s time to buy again.”

They can’t both be right: either Fortune magazine is wrong or Fortune magazine is wrong. As a matter of fact, they are both wrong.

Barr bases his argument on a graph comparing housing prices with the consumer price index. Before 1997, the two lines parallel one another. Then housing shoots upward until 2006. Though housing prices have fallen since then, they haven’t reached the line that would have been parallel to the CPI. Prices will continue falling, Barr argues, until they return to that line.

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High-Speed Rail Is Out of the Budget

Early Tuesday morning, Congressional leaders agreed on a 2011 budget package that zeros out funding for high-speed rail and rescinds $400 million in 2010 funding that remains unspent (transportation begins on p. 404). The package has the support of Senate Majority Leader Reid, House Speaker Boehner, and House Appropriations Committee Chair Hal Rogers.

The budget plan, now more than six months overdue, also cuts Amtrak’s budget by $80 million and rescinds 2010 highway funds that remain unspent by the states. But the federal government will continue to spend money on highways, transit, and Amtrak. The real significance is that the budget plan is probably the death knell for Obama’s ambitious plan to spend more than $500 billion extending high-speed rail to most major American cities.

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Dead or Not, States Want High-Speed Rail Money

High-speed rail may be dead, but numerous states would be happy to get some of Florida’s $2.4 billion in rejected high-speed rail funds. Yesterday was the deadline for applications for this money, and some of the applicants include:

  • California, of course, would like it all, even though that would still leave it $50 billion or so short in completing the first leg of its high-speed rail dream.
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Portland: Second-Most Miserable City?

The Wall Street Journal has published a “misery index” that ranks Portland as the nation’s second-most miserable city after Phoenix. Or, at least, the second-most miserable of the 20 cities included in the ranking. The newspaper’s index is supposed to be based on changes in unemployment, housing prices, and gas prices in the last year.

As much as the Antiplanner likes to read articles bashing the city I love to hate, I have reservations about any such “indices” of misery or anything else. Here is a conundrum, for example: why is it that higher gas prices (meaning transportation is less affordable) are considered bad, but higher housing prices (meaning housing is less affordable) is considered good?

The Journal‘s answer, no doubt, is that housing is an asset while gasoline is a consumption good. This isn’t really true; housing is a consumable as well. But even if it were true, not everyone bought their home a year ago. Over the last five years, housing prices dropped 15 percent in Boston but rose in Dallas. Yet, because the index is based on an annual change, Boston is considered less miserable than Dallas.

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