Streetsblog posted an article yesterday that quotes and attempts to refute the Antiplanner by claiming that increasing subsidies to transit agencies actually makes them more efficient. The article, written by former Strong Towns staffer Kea Wilson, misinterprets both the Antiplanner’s quote and the meaning of efficiency.
Does reducing the share of transit costs that are covered by farebox revenues increase efficiency? Photo by AgentAkit.
Transit systems get more efficient when they are more heavily subsidized, Wilson asserts. How can this be true? Efficiency is economically defined as “when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.” Before the pandemic, transit agencies were typically spending four times as much money moving someone a passenger-mile as automobiles. That sounds pretty inefficient to me and increasing subsidies even more is likely to be even more inefficient. Continue reading
