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Towards Global Peace and Prosperity

Three years ago, it was easy to be optimistic about the future. World poverty was in rapid decline. Many major diseases had been nearly eradicated. Global trade tied nations together, limiting military conflicts in most of the world outside of the Middle East. Thanks to good old American innovation, energy prices were low. Most environmental problems, including air and water pollution, were either solved or proven solvable. While doomsayers made dire predictions about climate change, it was hard to take them seriously when their prescriptions were the same tired old central planning ideas they had always advocated even though most of those ideas would, in fact, increase greenhouse gas emissions.

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Today, it is much easier to be pessimistic. The COVID-19 pandemic not only killed at least 6 million people (with perhaps a third of them in the U.S.), it revealed several critical weaknesses in the global trading system. Congress’ response to the pandemic, which was to dump trillions of dollars into the economy without increasing economic productivity, caused the worst inflation America has seen in 40 years. Russia’s invasion of Ukraine is leading to both energy and food shortages around the world that are bound to get worse as the war continues. On top of this, the conflict has revived fears of nuclear war.

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Purple Line’s Costs Up 98%, Delayed 4 More Years

Maryland’s Purple Line is now expected to cost more than $3.9 billion to construct, up from under $2.0 billion at the time the line was approved, according to a report from the Maryland Department of Transportation. The $3.9 billion includes a $250 million settlement with previous contractors and $219 million spent by the state on the project after the previous contractor quit. The opening date has also been pushed back to fall, 2026, compared with the original date of mid-2020 and the most-recent date of late 2022.

Maryland Governor Larry Hogan and then-Secretary of Transportation Peter Rahn have a laugh at the expense of the taxpayers when they announced that the state would build a “cost-effective and streamlined version of the Purple Line” in 2015. Memo to Gov. Hogan: Light rail is never cost-effective especially when it is predicted to make congestion worse. Photo by Purple Line Transit Constructors.

Like Honolulu’s rail line, the Purple Line is a project that should never have been approved. Even the Federal Transit Administration said it was not worth building until the state fabricated new, ridiculously high ridership estimates. Now that construction has begun, state officials intend to throw good money after bad no matter what the cost. Continue reading

U.S. Road Conditions and Performance in 2020

While Americans drove their cars only 84 percent as many miles in 2020 as in 2019, according to data recently published by the Federal Highway Administration, they drove semi-trucks 101 percent as many miles. These and other data are from the 2020 Highway Statistics, an annual compilation of data on the condition, use, and financial status of the nation’s highway network.

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Unlike the annual National Transit Database, which the Federal Transit Administration releases as a group of two dozen or so tables together each fall, the Federal Highway Administration releases Highway Statistics incrementally. To date, it has released most of the 2020 tables relating to the extent and performance of highways, but very few financial tables. This policy brief will review some of the non-financial tables that have been released. Continue reading

The Failure of Transit in the Post-COVID Era

Nationwide transit ridership in June was 50.3 percent of June 2019, making this the first month since the onset of COVID-19 that ridership recovered to half of pre-pandemic levels. Yet transit remains well behind Amtrak, which carried 63 percent of pre-pandemic passenger-miles in June; flying, which was at 74 percent; and driving. June data are not yet available for driving but May driving was 96 percent of pre-pandemic miles.

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Transit is doing poorly compared with Amtrak and driving because it is most heavily dependent on commuters. The 2017 National Household Travel Survey found that commuting and work-related travel make up less than 20 percent of personal driving but are 40 percent of transit ridership. With many people working at home during the pandemic, transit has lost a large share of its market. Continue reading

Senate Passes $550 Billion Infrastructure Bill

With support from 17 Republicans and 50 Democrats, the Senate passed a bill that includes:

  • $110 billion for roads and bridges;
  • $11 billion for “road safety,” which probably means anti-auto programs like complete streets;
  • $39 billion for transit;
  • $66 billion for rail (mostly Amtrak);
  • $15 billion for electric vehicle infrastructure and electric buses for transit agencies;
  • $1 billion for “reconnecting neighborhoods,” another anti-auto program;
  • $25 billion for airports;
  • $17 billion for ports;
  • $55 billion for drinking water;
  • $65 billion for broadband; and
  • $73 billion for clean energy infrastructure.

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Does Transit Cost-Effectively Help the Poor?

Almost every effort to justify subsidies to urban transit makes similar claims: transit supposedly saves energy, reduces greenhouse gas emissions, promotes economic development, relieves congestion, and helps low-income people. Previous policy briefs have shown that, in all but a handful of urban areas, transit uses more energy and produces more greenhouse gases than the average car; often makes congestion worse; fails to promote economic growth; and hurts the 95 percent of low-income workers who don’t ride transit.

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But what about the 5 percent of low-income workers who do commute by transit (or, at least, did so before the pandemic)? For some transit advocates, it’s not enough that nearly 80 percent of the costs of transit are subsidized. They argue that, to truly help low-income people, transit should be free. Is transit a cost-effective way of providing mobility needed to thrive in modern cities? Continue reading

Patsies for Corporate Welfare

On April 7, our loyal opponents at the American Public Transportation Association are holding a virtual conference on high-speed rail. The conference is sponsored by several companies that expect to profit enormously if the United States builds high-speed rail, including:

  • Alstom, a French manufacturer of rail cars for French and Italian high-speed trains, as well as conventional and transit rail cars for, among others, Honolulu, Ottawa, and many other cities;
  • Systra, a government-owned French engineering firm that does the engineering for new TGV routes as well as for French transit lines;
  • HDR, an American engineering company that talked many cities into building streetcar lines by falsely claiming that the streetcars would lead to economic development; and
  • HNTB, another American engineering firm that has help build or rebuild rail transit lines in Boston, Chicago, Dallas, and other cities.

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The environmental impacts of high-speed rail: An 80-foot right-of-way times 8,600 miles is 130 square miles of land disrupted by rail construction; times 20,000 miles is 300 square miles of disrupted land. Photo from the California High-Speed Rail Authority. Continue reading

Americans Are on the Move

When the pandemic hit, I thought it would slow down sales of existing homes. Instead, home sales in 2020 reached their highest level since the peak of the housing bubble in 2006. I also thought that the pandemic would slow new home construction. Instead, by the end of the year, new home starts also reached their highest level since 2006. When people began moving out of Manhattan, San Francisco, and other big cities, I assumed most of them would consider the moves temporary and would be renting at their new locations. Instead, homeownership took its biggest year-over-year leap since at least 1960 and probably in U.S. history, reaching levels not seen since, you guessed it, the 2006 bubble.

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Information about moving trends isn’t always clear. In September, Bloomberg writer Marie Patino questioned the conventional wisdom that people were moving out of big cities or indeed that more people were moving than in previous years. However, her data were based on how many people were hiring companies like United Van Lines, when in fact most moves don’t use professional movers. We won’t really know the truth until the dust settles a year or two from now, but we can get a glimmer of that truth by digging into what data are available. Continue reading

Transit’s 93-Year-Old Technology

In an era when transit industry buzz is all about light rail, streetcars, bus-rapid transit, and similar exotic (and expensive) services, it is often forgotten that the workhorse of the industry is the conventional bus (which Federal Transit Administration jargon calls the motor bus). Plodding along at average speeds of about 12 miles per hour, stopping as often as six times every mile, conventional bus services carry more daily riders than any other kind of transit and almost as many as all other modes combined. They aren’t sexy, yet close examination reveals a lot of problems within the transit industry.

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The first modern bus was developed in 1927 by the Twin Coach company. That in itself is a problem because it one of the newest technologies used by today’s transit agencies: streetcars, heavy rail, and commuter trains are all much older. Light rail is newer only as a slight variation of streetcars. The only technology that is really newer than buses is automated guideway systems such as peoplemovers in Detroit and Miami, but they are almost universally regarded as failures. Continue reading

Transit’s Diminishing Returns in 2019

The nation’s transit industry carried 19 million more trips in 2019 than in 2018, representing a 0.2 percent increase in ridership, according to the 2019 National Transit Database that was posted by the Federal Transit Administration last week. To get that increase, transit agencies had to spend 5 percent more on operating costs and increased capital spending by more than 10 percent.

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While even a 0.2 percent increase would have been welcome to a transit industry that had seen declines in each of the previous four years, the reality is that ridership declined in the vast majority of urban areas, and it took a 92-million trip increase in the New York urban area to overcome all of those declines. New York ridership had been depressed in 2018 due to delays caused by work being done on the city’s subway system, so the growth in 2019 was due more to the end of such work rather than any real recovery in transit ridership. Continue reading