Tag: highways

The Census Asks Too Much

Everyone in America, I presume, has just received a letter from the U.S. Census Bureau urging us to fill out our Census forms. Seems like a very expensive way to tell us to watch for the form to arrive in the mail. But I’m particularly interested in why they say we should promptly fill out the form:

Your response is important. Results from the 2010 Census will be used to help each community get its fair share of [federal] government funds for highways, schools, health facilities, and many other programs you and your neighbors need. Without a complete, accurate census, your community may not receive its fair share.

Obviously this is a zero-sum game. If my neighbors and I all fill out the form, then you and your neighbors will get less from the common federal trough. But at least we’ll be getting our “fair share,” as the letter tells us twice in three sentences.

But where does the government get the authority to ask me my race, my age, and whether I have a mortgage? In fact, the Constitution authorizes the federal government to make an “actual enumeration” of the people in order to apportion seats in the House of Representatives. That’s all. Not to define and count us by race. Not to ask whether we’re homeowners or renters. Just to ask how many people live here, so they can apportion congressional seats.

I’m not interested in getting taxpayers around the country to pay for roads and schools and “many other programs” in my community. All the government needs to know from me is how many people live in my house. And I will tell them.

More on the census and the Constitution here.

High-Speed Fail

In a four-part series on the New York Times Economix blog, Harvard economist Edward Glaeser scrutinized high-speed rail and concluded that the benefits are overwhelmed by the costs. After making generous assumptions regarding the costs, user benefits, environmental benefits, and effects on urban development, Glaeser concludes that all the benefits of high-speed rail would still be less than half the costs.

As Washington Post writer Robert Samuelson observes, the Obama administration’s vision of high-speed rail is “a mirage. The costs of high-speed rail would be huge, and the public benefits meager.” Yet even Samuelson falls victim to the common assumption that high-speed rail “works in Europe and Asia” because population densities in those places are higher than in the United States.

The truth is that high-speed rail doesn’t work in Europe or Asia either. Japan and France have both spent about as much on high-speed rail as they have on their intercity freeway systems, yet the average residents of those countries travel by car 10 to 20 times as much as they travel by high-speed rail. They also fly domestically more than they take high-speed rail. While the highways and airlines pay for themselves out of gas taxes and other user fees, high-speed rail is heavily subsidized and serves only a tiny urban elite.

Obama uses the fact that France, Japan, and a few other countries are racing one another to have the fastest high-speed trains to argue that we need to join the race. That’s like saying we need to spend billions subsidizing buggy whip or horse collar manufacturers or some third-world country will beat us in those technologies. The fact is that high-speed trains will never be as fast as flying on long trips and never be as convenient as driving on short trips, and there is no medium-length trip in which high-speed rail can compete without heavy subsidies.

The rail advocates go ballistic whenever anyone questions their fantasies, mostly engaging in ad hominem attacks (“you must be paid by the oil companies!”) or accusing skeptics of lying about rail. The reality is that Glaeser (like me) “almost always prefer trains to driving.” If anything, he was too generous in many of his assumptions about high-speed rail.

For example, Glaeser built his case around a hypothetical high-speed line between Dallas-Ft. Worth and Houston, the nation’s fifth- and sixth-largest urban areas which together house close to 10 million people and are located about 240 miles apart, supposedly an ideal distance for high-speed trains. If the numbers don’t work for this market, how are they going to work for Eugene-Seattle, Tulsa-Oklahoma City, New Orleans-Mobile, St. Louis-Kansas City, or any of the other much smaller city pairs in the Obama high-speed rail plan?

The rail nuts don’t want to hear Glaeser’s (or Cato’s) numbers because they fantasize the Field of Dreams “build it and they will come” myth; that building rail will “create the demand for the rail lines.” That may have been true in nineteenth-century America, when no alternative forms of transportation could compete with rail. But it wasn’t true in twentieth-century France or Japan (where heavily subsidized high-speed rail carries only 4 to 6 percent of passenger travel), and it won’t be true in twenty-first-century America.

Building high-speed rail will be like standing in the chilly vestibule of an Amtrak train in mid-winter Chicago and burning million-dollar bills to keep warm. But that’s what happens when you base your transportation policies on a slogan from a Kevin Costner movie rather than on real data.

Turning Transportation Funding Upside-Down

House Transportation and Infrastructure Committee Chair James Oberstar (D-MN) has released more than 100 pages of documents describing how he wants to run federal transportation programs over the next six years. He proposes to spend $500 billion on highways and transit, which is a huge increase over the $338 billion authorized for the last six years.

Congress authorizes federal transportation spending in six-year cycles. In 1956, when Congress created the Interstate Highway System, it dedicated gas taxes and other highway user fees exclusively to highways. But in the 1982 reauthorization, it began diverting a small amount of gas taxes to transit.

Today, about 20 percent of the federal gas taxes you pay go to subsidize transit, while the other 80 percent supposedly go for highways — though much of that is wasted in planning and earmarks. Nationally, highway subsidies — mostly at the local level — average about a penny per passenger mile, while transit subsidies — much from your federal gas tax — average more than 60 cents per passenger mile.

Since 1982, transit has received hundreds of billions of dollars in subsidies from highway users. Yet in 2008 — supposedly a boom year for transit because of high gas prices — per-capita transit ridership was lower than it was in 1990, though higher than in 2000.

Oberstar considers this to be a great success. Building on that “success,” he effectively wants to turn the formula around: 20 percent for highways and 80 percent for transit. The executive summary of his plan supposedly “provides $337.4 billion for highways.” But, in fact, only $100 billion of this is dedicated to highways; most of the rest is in “flexible funds” that states and cities can spend on either highways or transit. Nearly $100 billion goes for transit, and $50 billion goes for high-speed rail. The remaining $12.4 billion goes for safety programs.

Oberstar’s detailed plan proposes to burden the Federal Highway Administration with an “Office of Livability.” This office would oversee land-use plans that all major metropolitan areas would be required to write; these plans would attempt to coerce people out of their cars by increasing population densities, spending flexible funds on transit, and spending highway money on reducing, rather than increasing, road capacities.

Page 38 explains that this is because past transit investments have “paid off” so well: transit carried 10.7 billion trips in 2008. The fact that this represents less than 1 percent of passenger transport is discreetly overlooked, especially by transit advocates who think they should get at least half of all transportation dollars.

For those who truly care about mobility, the saving grace is that the government is running out of money and cannot possibly afford Oberstar’s program. Even the Highway Trust Fund has run dry because the last reauthorization allowed Congress to spend more money than the revenues produced from gas taxes. Considering that President Obama is opposed to increasing the gas tax, no one has any idea where Oberstar thinks he is going to find $500 billion.

As a result, Secretary of Transportation Ray LaHood, on behalf of the Obama administration, wants to delay reauthorization for 18 months. Of course, Oberstar thinks this is a bad idea — it delays his moment in the sun, possibly until a time when he no longer chairs the committee.

The real problem, however, is that most people in Congress and the administration no longer see the value in funding transportation out of receipts or any connection at all between benefits and costs. Instead, it is just a big game of pork barrel and, for the slightly more idealistic, social engineering. All this lends credence to the idea that we should simply privatize our highways and transit systems.