Posts
October 3, 2017
Trains Magazine
P.O. Box 1612
Waukesa, WI 5317-1612
Re: "Time Is Up", by Bob Johnston (October 2017 edition)
Dear Sirs:
In response to Mr. Johnston's article about the real impact, if any, of
the government's 2009 $10 billion infusion to states and Amtrak for the benefit
rail passenger service, it is obvious that this massive spending had no real
long term impact. Let's just look at several reasons why:
1. The money was NOT invested by private individuals who expected to
reap a decent return. It was simply a political handout with dubious goals (get
America working again?...who knows?). No one ever expected that the money would
be returned to the treasury with interest. And herein lies the problem. Ten
billion dollars was diverted from the real economy to politically connected
cronies. That's $10 billion of capital that was wasted instead of $10 billion
of capital that would have been invested profitably by the private economy.
2. The states and Amtrak do NOT have a business plan for revitalizing
rail service; all they have is a pie-in-the-sky wish list. Wishes are not
plans. Business plans can be evaluated according to some criteria; wishes
cannot be evaluated by any objective standard. Therefore, spending to satisfy wishes
become nothing more than exercises in political power and political log rolling
(you vote for my expenditure and I'll vote for yours. Neither of us care one
whit about the soundness of these expenditures).
3. Amtrak will NEVER be profitable until it is privatized. The only way
to determine whether Amtrak can be profitable is for people to invest their own
money with an expectation that it will be returned to them with interest. If no
one wishes to purchase Amtrak, then Amtrak should be shut down, pure and
simple. To keep it going under the present conditions requires a constant
infusion of public money, which represents a diversion of capital from sound
investments. Instead of capital accumulation via private investment, America
suffers capital consumption. It is akin to spending one's savings on personal
consumption instead of investing in productive assets. Instead of a future of
independence and dignity, one finds oneself living as a dependent of some sort
(relatives, the government, private charity).
Patrick Barron
20 McMullan Farm Lane
West Chester, PA 19382
Phone: 610-793-3605
Email: PatrickBarron@msn.com
