“Yes, but it creates jobs!” has long been the last refuge for scoundrels promoting expensive boondoggles, so it is no surprise that it is now being used to justify continued spending on the California high-speed rail project. The most recent release from the California High Speed Rail Authority says that they now expect the project to cost up to $128 billion, but that’s okay, because it is putting 10,000 people to work.
That argument might carry some weight if we had a high unemployment rate. But right now, the United States is suffering from a major labor shortage. Each person working on the California rail line is one less person helping to move goods to markets, build homes, and so other essential work. One more strike against high-speed rail: it contributes to the increasing costs of everything. Continue reading
