Reason #56 to Oppose Rail Transit

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His Lips Are Moving

I suppose Denver’s Regional Transit District general manager Cal Marsella has a right to call me a “paid political operative” in the opening paragraph of his reply to my proposal that RTD cancel its FasTracks rail plan. After all, I opened my article by noting that Marsella gets paid more than $290,000 a year.

Of course, that is many times more than I have been paid in my best year, and I was nice enough to not even mention his $10,000 “auto allowance” or his 12.5% bonus. Yet he calls my article “sour grapes invective” that is filled with “distortions, manipulations and factually inaccurate statements.” In fact, it is his article that is filled with distortions and manipulations.

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Financial Meltdown

Note: Updated in response to Monday’s news and opinion columns.

Last week’s excitement seemed to take many by surprise, yet it was in fact predicted by many. Start with Charles Morris, who began writing his 2007 book, The Trillion-Dollar Meltdown, in 2005.

“The whole world economy is at risk,” said The Economist, also in 2005. “It is not going to be pretty.” In 2004, the magazine-that-calls-itself-a-newspaper estimated that two-thirds of the world’s housing (by economic value) was “a potential housing bubble.” By 2005, it was calling it “the biggest bubble in history.” And, as it noted in 2003, “soon or later,” bubbles always burst.

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Reason Foundation on High-Speed Rail

The Reason Foundation just published its analysis of California’s high-speed rail plan. The full study is also accompanied by a series of policy briefs on the effects of high-speed rail on congestion, greenhouse gases, and California finances.

“The current high-speed rail plan is a fairy tale,” says Adrian Moore, Ph.D., Reason’s vice president of research. “The proposal suggests these high-speed trains will be the fastest ever; the most-ridden ever; the cheapest ever; and will convince millions of Californians they no longer need to drive or fly. Offering up a best-case scenario is one thing, but actually depending on all of these miracles to happen simultaneously is irresponsible public policy.” Moore also has an op ed on the subject in today’s Orange County Register.

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Paulson: Housing Is the Root of the Problem

“I’ve consistently said that when we looked at our financial institutions,” Secretary of the Treasury Henry Paulson said Monday, “the root of the problem lies in this housing correction.” Housing prices went up — and banks and other financial institutions invested in mortgages. Housing prices went down — and banks and other financial institutions failed.

Why did housing prices go up? Because of supply constraints. We know that home builders can meet almost any demand if there are no constraints on land. We know that because, as the latest home price indices reveal, the fastest growing metropolitan areas in America — places like Dallas and Houston — did not suffer from housing bubbles and are not now suffering any serious correction.

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Scott Adams: Economists Prefer Obama

Scott Adams, the creator of Dilbert, wanted to know which presidential candidates’ economic plan had the support of economists. Adams describes himself as socially liberal and fiscally conservative, and he believes economists have a worthwhile point of view if you ask them the right questions.

A medical doctor, he points out, can’t tell you whether you are going to die of a heart attack, cancer, or an auto accident. “But if a doctor tells you to eat less and exercise more, that’s good advice even if you later get hit by a bus.” In the same way, economists can’t predict where the economy will be a year from now, but they can give good advice on economic policies such as free trade.

Since no one else was asking economists for their opinions, Adams commissioned a survey of members of the American Economic Association. He reported a summary of his results to CNN. The detailed results are available in a PowerPoint file. You can read his press release about it on his blog.

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Condos by the Train Tracks

(Note: The Antiplanner’s review of high-speed rail will continue next week.)

The California legislature has approved a bill aimed at reducing greenhouse gas emissions through smart-growth planning. SB 375 requires that all metropolitan planning organizations in California develop plans to meet state targets for reducing auto-related greenhouse gas emissions. The bill also encourages planners to meet those targets through high-density development, improving the jobs-housing balance, and all the other usual smart-growth programs.

SB 375 has been described as the biggest California land-use bill in 30 years. It has also been called the “condos by the train tracks” bill. Legislators in other states are no doubt already drafting similar bills.

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Moving to the Center

Going into their respective conventions this year, neither presidential nominee enjoyed the full support and faith of their parties. Normally, by the time of the convention, nominees turn from appealing to their parties to appealing to the electorate as a whole. In short, they move toward the center.

Yet, as the Antiplanner observed last week, Obama’s acceptance speech was an appeal primarily to the left wing of the Democratic Party, not to the nation as a whole. Similarly, McCain’s selection of Sarah Palin as his running mate was an appeal to the right wing of the Republican Party (though Palin also appealed to McCain as a maverick who stood up to Alaska’s political establishment and won).

Both appeals were successful, but they raise the question of how the candidates can win without broader support. Of course, someone has to win, but usually the winner is the one who gains the support of the “independents” and other swing voters.

Perhaps Senator McCain’s acceptance speech, then, was the first effort to win that broader support. Although his speech contained policy proposals, it was mainly an expression of McCain’s philosophy and ideals. He also spent as much time congratulating Obama as criticizing him; it is clear that he intends Palin to be the attack dog in this campaign.

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Hope and Big Government

The Antiplanner rarely listens to speeches, preferring to rely on written documents. I’ve never listened to a speech by Obama, but I decided to listen to his acceptance speech last night. What I heard did not give me much hope.

P.J. O’Rourke once said, “Democrats believe government can work. Republicans believe it can’t, and then they get elected and prove it.” Certainly George Bush fulfilled O’Rourke’s expectations. But it nonetheless remains true that the fundamental political debate in America remains the role of government.

Obama admitted that “Government cannot solve all our problems.” But the only thing he suggested that government can’t do is turn off the television at night and make children do their homework. He did make a lot of promises that government under President Obama will do a lot of things that most experts believe it really can’t do.

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Do We Still Have a Dream?

Today is the 45th anniversary of the march on Washington and Martin Luther King, Jr.’s I have a dream speech. I was 10 years old at the time.

I remember the Selma to Montgomery marches. I remember feeling outraged that anyone would discriminate against someone else because of the color of their skin. I remember going to the Unitarian church school (where I learned to be an atheist), and my mother coming out of the church service one day saying that Reverend Steiner had fired people up about civil rights so much that if he had said, “Go get on a bus to Alabama,” half the congregation would have done it. I remember feeling disappointed that he didn’t say it.

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