Everyone knows that New York City is the heart of the United States, Manhattan is the heart of New York City, and the subways are the arteries that keep that heart pumping. Thus, when the Metropolitan Transportation Authority (MTA) warns that it will have to make “doomsday cuts” if Congress doesn’t give it another $12 billion, and that such cuts would “devastate the city for years to come,” people listen.
At the same time, New York officials say that subway riders should not have to suffer any fare increases to keep the system running. After all, the whole country benefits, so why should the lowly subway riders have to pay the full cost of their rides?
But who really benefits from the New York City subway? The extensive subway network has allowed Manhattan to grow to and maintain population and job densities found nowhere else in the country. So Manhattan property owners benefit, but how does that benefit the rest of the country? Six years ago, the land alone in Manhattan was estimated to be worth more than $1.7 trillion, which is more than $120 million an acre, and a considerable portion of this value is due to the subway system. Continue reading
