Time for an Extreme Makeover

“We need an extreme makeover of national transportation policy,” Robert Puentes of the Brookings Institution recently testified before the Senate Committee on Banking, Housing and Urban Affairs. Considering that this country has thrown more than $100 billion down the rail transit rathole and gotten virtually nothing in return, it is hard to argue with that.

Unfortunately, Puentes has the opposite in mind. After all, his testimony is titled, “Strengthening the Ability of Public Transit to Reduce Our Dependence on Foreign Oil.” His argument is filled with errors, references to shoddy research, and undocumented assumptions about the magical abilities of rail transit to solve all our problems.

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Reason #56 to Oppose Rail Transit

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His Lips Are Moving

I suppose Denver’s Regional Transit District general manager Cal Marsella has a right to call me a “paid political operative” in the opening paragraph of his reply to my proposal that RTD cancel its FasTracks rail plan. After all, I opened my article by noting that Marsella gets paid more than $290,000 a year.

Of course, that is many times more than I have been paid in my best year, and I was nice enough to not even mention his $10,000 “auto allowance” or his 12.5% bonus. Yet he calls my article “sour grapes invective” that is filled with “distortions, manipulations and factually inaccurate statements.” In fact, it is his article that is filled with distortions and manipulations.

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Financial Meltdown

Note: Updated in response to Monday’s news and opinion columns.

Last week’s excitement seemed to take many by surprise, yet it was in fact predicted by many. Start with Charles Morris, who began writing his 2007 book, The Trillion-Dollar Meltdown, in 2005.

“The whole world economy is at risk,” said The Economist, also in 2005. “It is not going to be pretty.” In 2004, the magazine-that-calls-itself-a-newspaper estimated that two-thirds of the world’s housing (by economic value) was “a potential housing bubble.” By 2005, it was calling it “the biggest bubble in history.” And, as it noted in 2003, “soon or later,” bubbles always burst.

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DC Leaders Want to Make Driving More Difficult

“D.C. leaders are considering traffic changes that would make driving in the city more challenging for commuters,” says NBC News. In order to “promote pedestrian safety, use of public transit, biking and walking,” they want to close a reversible lane and part of an Interstate freeway.

The more likely effect of such changes will be to drive more jobs to the suburbs. Washington already has lots of pedestrians and transit riders. Though cycling is iffy, closing a reversible lane isn’t going to help.

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Of course, that’s the way a lot of urban planners think.

High-Speed Rail Part 9: Conclusions

The Antiplanner is an unabashed rail nut. My office walls are filled with pictures of trains and rail memorabilia. I’ve traveled at least a quarter of a million miles on Amtrak and Canada’s VIA. When I’ve visited Europe, Australia, and New Zealand, my preferred method of local travel has always been by train. I helped restore the nation’s second-most powerful operating steam locomotive, and my living room has the beginnings of a model railroad.

There is no doubt that, if high-speed rail worked, I would be the first to support it. But my definition of “works” is somewhat different from that of rail advocates, one of whom once told me that he considered a rail transit project successful if it allowed just one person to get to work a little faster — no matter how much it cost everyone else.

For me, “works” means that a project is cost-effective at achieving worthwhile objectives. “Cost-effective” means that no other projects could accomplish the same objectives at a lower cost. “Worthwhile objectives” might include reducing traffic congestion, air pollution, or energy consumption. Though high-speed rail advocates are gleeful about the prospect, I don’t consider shutting down competing air service to be a worthwhile objective.

This series of posts on high-speed rail has revealed at least twelve important facts.

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Reason Foundation on High-Speed Rail

The Reason Foundation just published its analysis of California’s high-speed rail plan. The full study is also accompanied by a series of policy briefs on the effects of high-speed rail on congestion, greenhouse gases, and California finances.

“The current high-speed rail plan is a fairy tale,” says Adrian Moore, Ph.D., Reason’s vice president of research. “The proposal suggests these high-speed trains will be the fastest ever; the most-ridden ever; the cheapest ever; and will convince millions of Californians they no longer need to drive or fly. Offering up a best-case scenario is one thing, but actually depending on all of these miracles to happen simultaneously is irresponsible public policy.” Moore also has an op ed on the subject in today’s Orange County Register.

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High-Speed Rail Part 8: Alternatives to California’s HSR

The 2005 environmental impact statement for California’s high-speed rail includes two alternatives to building rail: a no-action alternative and a “highway-air” alternative that proposes major expansions of both freeways and airports in the rail corridor. The highway component alone of this alternative was projected to cost twice as much as high-speed rail, allowing rail proponents to claim that rail is cheaper than roads (page 4-1).

But this alternative was a “straw man” designed to make high-speed rail look good. One reason for the high cost is that the alternative proposed to expand every freeway along the rail route, even highways that are not expected to be congested in the rail project’s time horizon. For example, the alternative adds one-third more capacity to freeways in the Central Valley that are expected to operate at only 92 percent of capacity in the no-action alternative (page 3.1-12).

On top of that, the highway-air alternative is more than five times as effective at relieving congestion than the rail project. Where high-speed rail is expected to take 3.8 percent of cars off the road, the highway-air alternative reduces congestion by more than 20 percent (page 3.1-12). This suggests that an alternative that costs only one-fifth as much as the highway-air alternative, or about half as much as the rail alternative, would be more comparable to rail.

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Paulson: Housing Is the Root of the Problem

“I’ve consistently said that when we looked at our financial institutions,” Secretary of the Treasury Henry Paulson said Monday, “the root of the problem lies in this housing correction.” Housing prices went up — and banks and other financial institutions invested in mortgages. Housing prices went down — and banks and other financial institutions failed.

Why did housing prices go up? Because of supply constraints. We know that home builders can meet almost any demand if there are no constraints on land. We know that because, as the latest home price indices reveal, the fastest growing metropolitan areas in America — places like Dallas and Houston — did not suffer from housing bubbles and are not now suffering any serious correction.

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High-Speed Rail Part 7: The Benefits of California HSR

The costs are exorbitant and rising. The risks are staggering. And the benefits? Even if you believe the Authority’s optimistic assumptions, you pretty much need a magnifying glass to see them.

What are the benefits claimed for the rail network? Less traffic congestion, less energy consumption, less air pollution and greenhouse gas emissions, economic development, and, of course, saving people’s time.

Congestion: With or without rail, the EIS predicts that highway congestion will be far worse in 2020 than it is today. With rail, highways parallel to the rail lines will have an average of 3.8 percent less traffic than if rail is not built (p. 3.1-12). Rail will do most on the L.A. to San Diego route (which will probably be one of the last segments to be built), taking 7.9 percent of cars off the road. It will remove 6.6 percent of cars on the Bay Area-to-Central Valley portion. Elsewhere the relief will be less than 3.5 percent.

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