Bloomberg News, or at least a writer named Stephen Smith, has discovered that the transit industry is gouging taxpayers with its schemes for high-cost rail transit and high-speed rail. Smith says there are two causes for this gouging.
First, “agencies can’t keep their private contractors in check,” and instead hire “consultants who consultant with consultants and advisers who advise advisers.” This drives up the cost of planning and building rail lines. Second, antiquated labor practices drive up the cost of operating the trains.
Smith makes good points, but his implicit assumption, that fixing these problems would make passenger rail transportation economically feasible, is wrong. He cites several examples in Europe and Japan of “how it ought to be done,” but the fact is that European and Asian countries are wasting their money on rail transit as well.
