California Is Dying

The Obama administration has announced that it wants to spend a half-billion dollars buying high-speed rail cars in an obvious bid to create more businesses beholden to the administration as well as to its rail program. But more and more people are turning against the president’s dream of being the Eisenhower of high-speed rail.

The Wall Street Journal calls the California high-speed plan the Kafka Express. Michael Lind, of the center-left New America Foundation, realizes that high-speed rail is the wrong future. Yet Jerry Brown is so insistent on building it that he’s willing to sacrifice welfare and other social programs.

In response to pressure from the federal government to start construction, the president of California’s senate has asked the federal government to commit itself to put up several tens of billions to finish the project. Of course, with resistance to the project in Congress, that’s not going to happen.

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Ho Hum, Another Airline Merger

American and US Air are thinking of merging, so naturally it’s time for a scare story about how mergers will lead to higher prices. Not likely.

A few years ago, there were six big airlines, but four of them–Delta & Northwest, United & Continental–merged into two. But Southwest is now one of the big four, Jet Blue is growing fast, and Alaska Airlines is growing and reaching into new markets. Meanwhile, Delta and American both carried about 5 percent fewer passengers in 2011 than they did in 2006.

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Dirty Politics in Lane County

In Oregon’s primary election this past Tuesday, Andy Stahl, who frequently comments on this blog, lost his bid to become Lane County (Oregon) commissioner. It is hard for me to tell this story, as I am one of the reasons he lost.

His opponent was Pete Sorenson, a four-term incumbent. I’ve known Pete for about as long as I’ve known Andy (meaning 35 years), and while I can’t say we were friends, we were always friendly. In the late 1970s he worked for Oregon Congressman Jim Weaver and I worked (as a very low-paid consultant) for the Oregon Wilderness Coalition (now Oregon Wild) helping Weaver’s staff justify their boss’s support for wilderness even though he represented the congressional district that cut more national forest timber than any other.

In the early 1980s, Sorenson went to the University of Oregon law school, and I frequently saw him on campus when I was studying economics. Over the next several decades, we would meet at conferences or bump into each other in Eugene and exchange war stories about various environmental issues. When I started proposing free-market reforms of the Forest Service in the late 1980s, he always listened politely and expressed sympathy with my growing fiscal conservatism.

Recently, however, Pete got in trouble over Oregon’s open meetings law. Apparently, he and one or two other county commissioners conspired to make certain budgetary decisions in private against the advice of the county attorney. In a sharply worded decision, an Oregon judge found that Pete and another commissioner “willfully violated” the law, though he found the third commissioner innocent. Neither of the guilty commissioners ever expressed any contrition or remorse, instead insisting they were being persecuted as the most liberal members of the commission.

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Toodling Around DC in the Google Car

The Google car is in Washington, DC, and the Antiplanner managed to hitch a ride around downtown. My host, Anthony Levandowski–sometimes driving, sometimes just sitting in the driver’s seat–answered a number of questions about the car.

The Cato Institute’s David Boaz stands next to the Google Prius. In addition to the spinning laser sensor on top of the car, note the infrared sensors in the front bumper (there’s a similar one in the center of the back bumper). The laser sensor finds nearby objects while the infrared sensors can detect objects much further away. Click on any photo for a larger view.

He said the car and hardware cost about $100,000, but Google has just a handful of them. When they go into mass production, he estimated an ordinary car could be retrofitted for a couple of thousand dollars. Some cars already have many of the sensors the Google car uses, so the cost of retrofitting such cars would be much lower.

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Obama Plays Hardball with California

The Obama administration is threatening to take back the $3.3 billion high-speed rail grant to California if the state legislature fails to approve the state’s high-speed rail plan by the end of June. Legislators had planned to hold some hearings this summer so they could base their decisions on actual facts rather than politics. Ironically, when California Republicans in Congress proposed to rescind the money, they were told there was no legal way to do it.

The High-Speed Rail Authority’s latest plan cuts Anaheim and Orange County out of the picture, alienating another group of voters and officials. Despite these cuts, the agency still expects to spend $68 billion building from San Francisco to Los Angeles. This is far more than it told voters it would cost when it asked them to approve the plan in 2008, and even if the legislature allows the authority to sell bonds to match the federal grant, the agency has less than 10 percent in hand.

A reporter at the Los Angeles Times did a little arithmetic and calculated that, to complete the first 130-mile segment in the Central Valley by 2017 as planned, the authority will have to spend $3.5 million per day. With the possible exception of war time, this is probably more than any one entity has ever spent on one project before. The implication is that the authority, which hasn’t been able to adequately manage anything yet, doesn’t have the capability of effectively spending that much money.

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Let’s Be Like Europe and Build More Trains!

One recently revealed aspect of the European debt crisis is the role European passenger trains played in running up national debts. The Greek rail system, for example, has debts of $13 billion, or about 5 percent of Greece’s gross national product. Rail workers get paid so well that it would be cheaper to hire taxis to move passengers, at least if the taxis carried two or more passengers at a time.

Greece spends $1.20 per passenger mile on passenger trains. That’s twice what the U.K. spends, but even the U.K. trains are hardly a model of efficiency considering that driving in the U.S. costs only about 35 cents a vehicle mile, including subsidies to highway. Divide that by however many passengers you think are in the cars to get an average cost per passenger mile.

Spain, meanwhile, went so far overboard in building high-speed rail lines that it recently shut one down because it was attracting only nine passengers a day. That’s what happens when you let politicians decide where the trains should go.

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Back in the Air Again

The Antiplanner will be in Washington, DC this week to release American Nightmare and a new paper on transportation finance. On Tuesday noon, May 14, the Antiplanner will be one of three speakers at a hill briefing sponsored by the Competitive Enterprise Institute on transportation.

At the briefing, the Antiplanner will present a new paper on highway finance arguing that the states should move rapidly to replace gas taxes with vehicle-mile fees. Not only are vehicle-mile fees a more equitable way of paying for roads, they will also do far more than any other policy, including HOT lanes, to relieve traffic congestion.

The paper points out the little-understood fact that congestion has two causes: first when traffic flows exceed maximum roadway capacities and second when those capacities are reduced to well below their maximum levels. As a result, congestion can continue for hours after the moment–which may only be for a few minutes a day–when flows exceed maximum capacities.

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Why Didn’t He Take a Stand on Pot?

When a president takes a stand on a highly controversial issue like gay marriage in an election year, you know he is doing it solely to motivate his base. How so? The job of the president has nothing to do with who can and cannot get married, so in announcing that he supports gay marriage, President Obama is not announcing that he will or can actually do anything about it.

The Antiplanner thinks of gay marriage as one of three litmus sets for whether someone is a libertarian. Are you fiscally conservative but you support gay marriage and drug decriminalization? Then you are libertarian. Some libertarians disagree with one another on other issues such as abortion, immigration, and the war on terror. But I don’t think anyone would call themselves libertarians if they opposed gay marriage or drug decriminalization.

Drug decriminalization–especially for minor drugs like marijuana–is also supported by most of those on the left. Here is an issue the president can actually do something about, as he commands numerous agencies–the FBI, BATF, DEA, etc.–that enforce federal drug laws. At the very least, he can order those agencies to respect state laws in states that have legalized medical marijuana.

Yet Obama has “massively escalated the federal government’s attacks on medical marijuana businesses,” says the director of the Marijuana Policy Project in the Washington Post. His administration has ramped up the war on pot in Colorado despite the fact that even most Republicans in Colorado support medical marijuana.

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The Wildlife Service (Extermination Service, That Is)

A little-known agency in the Department of Agriculture is an out-of-control destroyer of wildlife, reports investigative journalist Tom Knudson in a lengthy series of articles in the Sacramento Bee. The agency, which calls itself the Wildlife Service, kills hundreds of thousands of animals each year. Thousands of non-target animals, ranging from endangered species to people’s pets, are killed by mistake, and in at least some cases the agency’s response is to shoot, shovel, and shut up.

The sad fact is that this has been going on for many years. Back in 1995, the Antiplanner wrote an in-depth audit of this agency, which was then known as “Animal Damage Control.” Prior to about 1985, this program was part of the Fish & Wildlife Service, but Congress moved it to Agriculture under the not-entirely wrong notion that FWS didn’t really have its heart in indiscriminately killing wildlife.
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The so-called Wildlife Service provides an excellent example of why the left should re-examine its notion that “government is good.” This program was created a century ago, yet there was little reason then and less now for the federal government to be involved in wildlife control. At least a few species have come close to extinction thanks to this program, and it should be shut down immediately. Congratulations to Knudson and the Bee for publishing these articles.

The True Cost of Driving

Some smart-growth advocates argue that, even though housing costs more in cities than in suburbs, transportation costs in cities are so much lower that the total cost of housing plus transportation is lower. The problem with these claims is that they are based on average transportation costs.

As Steve Polzin, a transportation researcher from the University of South Florida, points out, low-income people spend a lot less on transportation than high-income people. He estimates the people in the top 20 percent spend five or six times as much on driving as people in the bottom 20 percent.

While wealthier people do drive more than low-income people, they don’t drive five or six times as much. Instead, much of the difference in expenditures “lies in the very meaningful differences between new car ownership and the reality that much of America isn’t driving new cars with high depreciation levels.” In other words, only a few people actually buy cars new and then replace them as soon as they’ve paid them off (which is the assumption that AAA makes in its annual cost-of-driving survey).

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