Envisioning the Amtrak Transition Process to Private Enterprise

[DET63]

My guess is that if Amtrak is "privatized," it will be eliminated entirely within a few years, maybe a few months of "privatization." The NEC might continue to exist assuming there's enough local governmental or non-governmental support for it, but everything else, including HSR proposals, corridor services in California, the Pacific Northwest, and elsewhere, will be ended. Remember that Mexico "privatized" its rail system in the late '90s, and all but eliminated passenger rail services thereafter, with no (AFAIK) serious consequences to its overall transportation infrastructure.

 

[Eric S]

My guess is that if Amtrak is "privatized," it will be eliminated entirely within a few years, maybe a few months of "privatization." The NEC might continue to exist assuming there's enough local governmental or non-governmental support for it, but everything else, including HSR proposals, corridor services in California, the Pacific Northwest, and elsewhere, will be ended. Remember that Mexico "privatized" its rail system in the late '90s, and all but eliminated passenger rail services thereafter, with no (AFAIK) serious consequences to its overall transportation infrastructure.

2 comments/questions:

1. What remained of Mexico's passenger rail "network/system" at the time it was privatized/dismanteld? My understanding is that it was more akin to Amtrak's LD services rather than higher-frequency corridor operations (such as NEC, California, Northwest, Midwest, elsewhere).

2. Why wouldn't state-funded services survive?

 

[henryj]

Passenger rail should be put under the DOT and funded the same as highways which is something like 80% Fed and 20% state. Just as the DOT and the states decided on the Interstate highway system, they can decide which rail routes to fund. Then if they want to privatize transportation, it is all under the same umbrella. Passenger rail should not be treated as the unwanted step child. It's all about mobility and which mode works best. I wouldn't pattern anything after what they do in Mexico. lol.

 

[George Harris]

I have proven you wrong.

There are a few points I will concede. However, you have also made many statements without backup some of which are contridicted by experiences elsewhere. Reference your sources. Also, not all things written and published as revealed wisdom on any subject are correct.

 

[Ryan]

Amazing bit of analogy there. You want the US to resemble Zimbabwe, right?

When, if ever was the Zimbabwean Dollar the reserve currency of the world?

They can inflate the heck out of their dollar all they want, but things work a little different when you're the US and issue the reserve currency of the world.

But, if you'd actually read and understood the thread you'd know that's already been explained.

 

[jb64]

Here is an interesting white paper that discusses current theories in monetary policy and some of the unintended consequences including "imprudent behavior by Government" which I think explains nicely why that train of thought may be dangerous. Related to trains, there is a brief reference to expenditures on infrastructure, which I believe rail falls into. I support government expenditures on infrastructure, provided it is done with with intelligence. This whitepaper, published by the Dallas Fed, takes into account many of the current economic "theories" and balances them against each other highlighting the pros and the cons.

 

[Big Iron]

Your entire argument is based on a false premise.

A country that issues its own currency cannot run out of money.

It can't run out but it certainly will render it worthless. Did you flunk eco101?

Did you bother to actually read the thread?

I actually got an "A" in both macro and micro, not that it's any of your business.

We already know that in this comic thread many believe that ones ignorance is equivalent to another's knowledge or expertise and therefore one is substitutable by the other. And the comedy continues. I am considering starting a peanut and popcorn business on this thread. :lol:

Keeping the humor on an economic track shouldn't your business be a guns and butter business?? :hi:

 

[George Harris]

Amazing bit of analogy there. You want the US to resemble Zimbabwe, right?

When, if ever was the Zimbabwean Dollar the reserve currency of the world?

They can inflate the heck out of their dollar all they want, but things work a little different when you're the US and issue the reserve currency of the world.

But, if you'd actually read and understood the thread you'd know that's already been explained.

Why would you, or any of use, be so egocentric as to assume that the US dollar will remain the reserve currency of the world? Did you not get the message that one of the objectives behind the formation of the Eurozone was to surplant the US dollar with the Euro? We are currently sending so much money to China that the Yen could easily becme the reserve currency. The main thing stopping that would be the depression they would have if their export markets (mainly the US) dried up.

Anyone thinking that we could not become the new Zimbabwean currency though a combination of arrogance and stupidity, a lot of which is currently in evidence, is thinking with the wishbone, not the headbone.

 

[Ryan]

You'll have to point to the post where I said that it would remain the reserve currency of the world.

 

[George Harris]

You'll have to point to the post where I said that it would remain the reserve currency of the world.

I took this statement to mean that you thought the US$ would remain so.

They can inflate the heck out of their dollar all they want, but things work a little different when you're the US and issue the reserve currency of the world.

 

[Ryan]

Well that was a pretty foolish assumption, since it was just a statement of current fact.

When the inevitable happens and the dollar is replaced by the Euro (ha!) or the Yuan (more likely), then we'll have to adapt.

But until that time, the fact is that our fiscal policy is going to operate a little differently than a 2 bit African country that nobody cares about.

 

[Trogdor]

The real issue is that Amtrak's bloated overhead is clearly being charged to the Zimbabwean economy, which caused their massive inflation.

 

[Ryan]

 

[GG-1]

We already know that in this comic thread many believe that ones ignorance is equivalent to another's knowledge or expertise and therefore one is substitutable by the other. And the comedy continues. I am considering starting a peanut and popcorn business on this thread. :lol:

At least with Crackerjacks one gets a surprise in the package.

Aloha