An anti-auto, pro-cycling group called the Institute for Transportation Development Policy (ITDP) claims that Americans spend too much on transportation, and if only they lived more like Europeans they would save a lot of money. However, there are some fundamental flaws in their analysis.
According to the article, Americans spend 13 percent of their household expenditures on transportation while Europeans spend only 11 percent. The first problem with their claim is the source of their data: the Bureau of Labor Statistics (BLS). BLS compiles data based on surveys. While BLS data might be useful comparing cities and states within the United States, the surveys are not completely reliable.
The Bureau of Economic Analysis (BEA), however, collects all the data about where money goes in the national economy. According to the BEA, only 9.2 percent of “personal consumption expenditures” went for transportation in 2019. This includes motor vehicles, transit, airlines, and other forms of mass transportation. These data are more comparable to the European data cited by ITDP. Continue reading
