Posted on Jan 28, 2011 - 12:10pm by admin in Automobilization, Transportation Politics
Back in 2008, after the usual flak campaigns from the forces of cars-first, the U.S. Congress decided to spend $2.6 billion per year to keep Amtrak, our ultra-pathetic gesture at a modern national railroad, the entity that does not even own its own tracks and deploys duct-taped rolling stock from the 1960s, operating from 2009 through 2013. Total federal train spending over those five years? About $13 billion.
At about the same time, Congress also decided to spend $25 billion on low-interest (which probably means zero or even negative interest — I haven’t been able to locate a disclosure of the terms) loans to private corporations, in order to stimulate so-called “alternative” automobile manufacturing.
This give-away, titled the Advanced Technology Vehicles Manufacturing Loan Program, comes, of course, on top of the scores of billions the U.S. public spends each and every year building and maintaining roadways for automobiles.
As they eagerly suck in this additional public subsidy, automotive capitalists, meanwhile, are enjoying expanding profit margins and cash flows.
Par for the course.
2 Responses
Rob Guy
January 31st, 2011 at 4:47 am
1Thank you for setting those two observations side by side. I was just reading last week in a thread heatedly debating public transit and particularly the historic dismantling of the public railways in the United States and the one argument set out by those who felt it was a good thing was that the public railways were costing tax dollars every year well before they were dismantled but not a word of any estimation of how many tax dollars per year go into paying for more and more paved roads and potholes. Recalling that I read articles on some areas intentionally grinding their paved roads back to gravel for financial reasons I did a quick search and in one instance related on wsj.com: “Our expenses outweigh the income” $2,600/mile/year for a gravel road or $75,000/mile to re-pave it and every dollar either way is coming out of taxes. the real problem seems that public transit rail lines keep the public’s money near the public’s hands and don’t enrich a tiny handful of massive corporations nearly as much as the isolated, atomized, hazardous methods of cars first transportation.
admin
February 15th, 2011 at 10:18 am
2Rob, isn’t it remarkable how this goes? The shills are always permitted to get away without mentioning the amounts of money that go into building automotive roads. Of course, it goes without saying that other costs, such as the gargantuan expenses of car crash medical and legal proceedings are even farther out of sight.
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