----- Original Message ---- From: Jordan Hayes <jmhayes at j-o-r-d-a-n.com> To: lbo-talk at lbo-talk.org Sent: Tuesday, February 17, 2009 12:21:05 PM Subject: Re: [lbo-talk] billions for high-speed rail!
>> There’s a massive $8 billion chunk of the stimulus
>> dedicated to creating a European-style network of high- speed passenger trains.
Whee! The SF-LA link is expected to cost $40B+ ... IF you started today and IF it doesn't have massive cost overruns like it's projected to. If this is shared between several projects, it looks like a drop in the bucket. If he was serious about wanting a "European-style" (ok, let's change that to "have a few good lines that are running!) train network, he'd add a zero or two to that number. The FAA budget is $15B and they don't even own any airports or anything.
[WS:] True, but are not these types of projects funded by a combination of federal, state and private funding? So the $8bn in federal funding may fetch additional 2-4bn in state funding. Still pittance, but it may act as "priming the pump" to start these projects going and attract private investment. I am not a big fan of privatization, but semi-private transit ventures can operate in a decent fashion, judging from EU examples (e.g. Eurostoar) and there is plenty of idle private capital in need of parking. Why not parking it in socially useful ventures?
Wojtek