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O Zones and HUBZones: Aimed at the Poor, Aid the Rich

The Republican Tax Cuts and Jobs Act of 2017 created 8,700 “opportunity zones” across the country which receive special capital gains tax breaks. O Zones have balkanized American cities into winner and loser zones, while encouraging corruption and making the tax code more complex.

O Zones are supposed to alleviate poverty, but the main beneficiaries are the landlords who own development sites within the politically chosen zones.

America’s Socialized Transit

On the heels of a National Transportation Safety Board (NTSB) report that found that Washington Metro “has failed to learn safety lessons” from previous accidents, Metro general manager Paul Wiedefeld will announce a plan today that promises to disrupt service for months in an effort to get the lines safely running again. While ordinary maintenance can take place during the few hours the system isn’t running every night, Wiedefeld says past officials have let the system decline so much that individual rail lines will have to be taken off line for days or weeks at a time to get them back into shape.

The Washington Post blames the problems on “generations of executives and government-appointed Metro board members, along with Washington-area politicians who ultimately dictated Metro’s spending.” That’s partially true, but there are really two problems with Metro, and different parties are to blame for each.

First is the problem with deferred maintenance. The Metro board recognized that maintenance costs would have to increase as long ago as 2002, when they developed a plan to spend $10 billion to $12 billion rehabilitating the system. This plan was ignored by the “Washington-area politicians who ultimately dictated Metro’s spending” and who decided to fund the Silver and Purple lines instead of repairing what they already had.

Second is the problem with the agency’s safety culture, or lack of one. According to the NTSB report, in violation of its own procedures, Metro used loaded passenger trains to search for the sources of smoke in the tunnels. Metro at first denied doing so, then said it wouldn’t do it any more. But Metro’s past actions sent a signal to employees that passenger safety isn’t important.

The Nation’s Worst-Managed Transit Agency

Eight years ago, I argued that San Jose’s Valley Transportation Authority was the nation’s worst managed transit agency, a title endorsed by San Jose Mercury writer Mike Rosenberg and transit expert Tom Rubin.

However, since then it appears that the Washington Metropolitan Area Transit Authority (WMATA or just Metro) has managed to capture this coveted title away from San Jose’s VTA. Here are just a few of Metro’s recent problems:

  1. Metro’s numerous service problems include a derailment in August that resulted from a flaw in the rails that Metro had detected weeks previously but failed to fix;
  2. Metro spent hundreds of millions of dollars on a new fare system that it now expects to scrap for lack of interest on the part of transit riders;
  3. One of Metro’s power transformers near the Stadium/Armory station recently caught fire and was damaged so badly that Metro expects to have most trains simply skip that station stop for the next several weeks to months;
  4. Metro’s fleet of serviceable cars has run so low that it rarely operates the eight-car trains for which the system was designed even during rush hours when all the cars are packed full;
  5. WMATA’s most recent general manager, Richard Sarles, retired last January and the agency still hasn’t found a replacement, largely due to its own ineptitude;
  6. Riders are so disgusted with the system that both bus and rail ridership declined in 2014 according to the American Public Transportation Association’s ridership report;
  7. Metro was so unsafe in 2012 that Congress gave the Federal Transit Administration extra authority to oversee its operations;
  8. That hasn’t fixed the problems, so now the National Transportation Safety Board (NTSB) wants Congress to transfer oversight to the Federal Railroad Administration, which supposedly has stricter rules.

A complete listing of Metro’s problems could fill a book (and in fact have already done so). The “solutions” implemented so far have been ludicrous. That idea that giving FTA safety oversight over WMATA would solve any problems relies on the fantasy that top-down bureaucracy works better at the federal level than the regional level. Meanwhile, NTSB’s proposal to transfer authority to the Federal Railroad Administration is more rearranging the deck chairs on a sinking ship than providing any real fix.

Big Brother Wants to Watch You Drive

In 2008, the Washington legislature passed a law mandating a 50 percent reduction in per capita driving by 2050. California and Oregon laws or regulations have similar but somewhat less draconian targets.

The Obama administration wants to mandate that all new cars come equipped with vehicle-to-infrastructure communications, so the car can send signals to and receive messages from street lights and other infrastructure.

Regulatory Spending Actually Rose under Bush

Analysts across the ideological spectrum generally agree that the government’s regulatory bodies fail far too frequently. However, analysts seem to learn different lessons from this experience.

Washington Post business columnist Steve Pearlstein cites numerous examples of failure and concludes, “It’s time for the business community to give up its jihad against regulation.”

He says:

Citizen Shahzad

Two smart guys on opposite sides of the political spectrum have sound points about the treatment of suspected Times Square bomber Faisal Shahzad.  First, Orin Kerr points out that investigators have some flexibility in determining when and

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