A group calling itself Transportation for America has compiled a list of more than 80 transit agencies that have made or are considering cuts in service in response to the recession. T4America sees this as a reason for federal bailouts to support transit agencies. This would be stupid.
As bad as they are, recessions do have a golden lining: they force businesses to clear out the dead wood and pare inefficient operations. Even in a pure market economy, private businesses would tend to become inefficient because of tradition, internal politics, and other forces. Recessions keep such inefficiencies to a minimum.
But when public agencies survive on tax dollars, they can avoid such housecleaning by seeking more tax support. This leads them to become increasingly bloated.
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