Scott Adams: Economists Prefer Obama

Scott Adams, the creator of Dilbert, wanted to know which presidential candidates’ economic plan had the support of economists. Adams describes himself as socially liberal and fiscally conservative, and he believes economists have a worthwhile point of view if you ask them the right questions.

A medical doctor, he points out, can’t tell you whether you are going to die of a heart attack, cancer, or an auto accident. “But if a doctor tells you to eat less and exercise more, that’s good advice even if you later get hit by a bus.” In the same way, economists can’t predict where the economy will be a year from now, but they can give good advice on economic policies such as free trade.

Since no one else was asking economists for their opinions, Adams commissioned a survey of members of the American Economic Association. He reported a summary of his results to CNN. The detailed results are available in a PowerPoint file. You can read his press release about it on his blog.

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High-Speed Rail Part 6: The Risks of California HSR

Yesterday’s post on the costs of California high-speed rail discussed the likelihood that this megaproject will cost more than projected and the likelihood that taxpayers who pay for construction will have to pay again to rebuild the system every thirty or so years. Such costs are not so much a risk as a certainty. But there are many other risks involved with high-speed rail, some of which could unexpectedly drive up construction costs even more, and others affecting operations.

Some of these risks were identified in the senate oversight report on high-speed rail, including right-of-way, safety, and ridership risks. One important rish that was not brought out by the senate report is the risk that competing technologies will render high-speed rail obsolete.

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A Light-Rail Interlude

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High-Speed Rail Part 5: The Cost of California HSR

The California High-Speed Rail Authority wants to build an 800-mile rail network between Sacramento, San Francisco, Los Angeles, Anaheim, and (via Riverside) San Diego. Electrically-powered trains would travel over this network at speeds up to 220 miles per hour, allowing people to get from downtown San Francisco to downtown L.A. in about 2-1/2 hours.

It isn’t clear to me why any self-respecting San Franciscan would want to get to downtown L.A. in 2-1/2 hours, though I can imagine why they would want to quickly return. I suppose the Northern-Southern California cultural divide works both ways. But the four big questions are: How much will it cost? What kind of risks are involved? What are the likely benefits? And what are the alternatives? Today’s post will focus on cost.

By any measure, California high-speed rail will be a megaproject, the most expensive public-works project ever planned by a single U.S. state. Exactly how much it will cost is still uncertain — estimates published in various places have varied over a wide range. Just as uncertain is who is going to pay that cost. What is certain is that the $9.95 billion in bonds (of which $9 billion is for high-speed rail and $0.95 billion is for connecting transit improvements) that California voters will decide upon this November will be little more than a down payment.

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Condos by the Train Tracks

(Note: The Antiplanner’s review of high-speed rail will continue next week.)

The California legislature has approved a bill aimed at reducing greenhouse gas emissions through smart-growth planning. SB 375 requires that all metropolitan planning organizations in California develop plans to meet state targets for reducing auto-related greenhouse gas emissions. The bill also encourages planners to meet those targets through high-density development, improving the jobs-housing balance, and all the other usual smart-growth programs.

SB 375 has been described as the biggest California land-use bill in 30 years. It has also been called the “condos by the train tracks” bill. Legislators in other states are no doubt already drafting similar bills.

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High-Speed Rail Part 4: Florida

Florida is the only part of the U.S. other than California that has seriously considered a true high-speed rail project. In 1992, the Florida legislature passed a high-speed rail transportation act. This led the state Department of Transportation to propose a public-private partnership to build a high-speed rail line from Miami to Orlando and then to Tampa. However, Governor Bush killed this plan in 1999.

A high-speed rail advocate (and former Bush supporter) named C.C. Dockery then spend $2.7 million of his own money putting a measure on the Florida ballot that amended the constitution to require the state to build a high-speed rail network. The measure did not raise taxes or appropriate any money to the project, and it was passed by the voters. By 2004, perhaps more aware of the cost, 64 percent of the voters were persuaded to repeal it.

By then, however, the legislature had created a state high-speed rail authority and appointed Dockery to the commission. The authority had let a contract to prepare a detailed environmental impact statement (EIS) for the first leg of a high-speed rail line connecting Tampa and Orlando. This EIS was published in 2005, and the rail authority has subsequently disbanded (at least, its web site no longer works).

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High-Speed Rail Part 3: The Midwest Rail Initiative

In 1935, the Chicago, Milwaukee, St. Paul & Pacific Railroad — known as the Milwaukee Road for short — began operating steam-powered passenger trains at speeds up to 110 miles per hour between Chicago and Minneapolis. Passengers at that time had their choice of three railroads — the Milwaukee, the Chicago, Burlington & Quincy, and the Chicago & Northwestern — each of which had at least two trains a day that took 6-1/2 hours between Chicago and the Twin Cities.

The Hiawatha at 85 mph. Photo by Otto Perry, courtesy Denver Public Library.

Today’s Amtrak trains require eight hours for the same journey. The Midwest Regional Rail Initiative — a consortium of nine state departments of transportation — proposes to reduce this to 5-1/2 hours and to similarly speed service from Chicago to Detroit, Cleveland, Cincinnati, St. Louis, and other midwestern cities.

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High-Speed Rail Part 2: Europe

Many Americans who visit Europe return gushing over the high-speed rail lines. If only our country had the foresight to build such wonderful trains! It is too bad that America is being left behind the high-speed rail revolution.

A German InterCity Express (ICE) train in Leipzig station.

Fast, frequent rail service may be a boon to tourists. But it does not play a significant role in overall European travel. Eurostat’s Panorama of Transport says that, as of 2004, rails in the 25-member European Union carried just 5.8% of passenger travel — down from 6.2% in 2000 — while automobiles (including motorcycles) carried 76.0%, up from 75.5% in 2000 (see p. 102).

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High-Speed Rail Part 1: Japan

The presidential nominating conventions are over, so we can now turn back to more serious business, like debating rail transit. As it happens, Californians will get to vote this November on whether to sell $9 billion worth of bonds to start building high-speed rail from San Francisco to Los Angeles.

With a current total estimated cost of $30 billion ($45 billion when branches to Sacramento and San Diego are included) and rising, California high-speed rail is a megaproject of truly disastrous proportions. As one California writer says, it “would make the Big Dig fiasco in Boston look like a small scoop.”

Japanese high-speed trains on display.

Before looking at the California plan in detail, it is worth examining high-speed rail in other countries. The best place to start is Japan, which introduced high-speed rail to the world in 1964.

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Moving to the Center

Going into their respective conventions this year, neither presidential nominee enjoyed the full support and faith of their parties. Normally, by the time of the convention, nominees turn from appealing to their parties to appealing to the electorate as a whole. In short, they move toward the center.

Yet, as the Antiplanner observed last week, Obama’s acceptance speech was an appeal primarily to the left wing of the Democratic Party, not to the nation as a whole. Similarly, McCain’s selection of Sarah Palin as his running mate was an appeal to the right wing of the Republican Party (though Palin also appealed to McCain as a maverick who stood up to Alaska’s political establishment and won).

Both appeals were successful, but they raise the question of how the candidates can win without broader support. Of course, someone has to win, but usually the winner is the one who gains the support of the “independents” and other swing voters.

Perhaps Senator McCain’s acceptance speech, then, was the first effort to win that broader support. Although his speech contained policy proposals, it was mainly an expression of McCain’s philosophy and ideals. He also spent as much time congratulating Obama as criticizing him; it is clear that he intends Palin to be the attack dog in this campaign.

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