The American Public Transportation Association has just published a paper on the economic cost of failing to modernize transit. The paper claims that the roughly $100 billion maintenance backlog built up by U.S. transit agencies — mostly for rail transit — will reduce “business sales” by $57 billion a year and reduce gross national product by $30 billion a year over the next six years.
Reaching this conclusion requires APTA to make all sorts of wild claims about transit. For example, it claims that a recent New Orleans streetcar line stimulated $2.7 billion in new infrastructure. In fact, that new infrastructure (including a Hyatt Regency) received hundreds of millions of dollars of subsidies and low-interest loans from Louisiana and New Orleans. In any case, APTA fails to make clear how rehabilitation of existing infrastructure could generate the same economic development benefits as building new infrastructure. Continue reading
