Subsidizing transportation

Reader comment on: USAirways Shuttle Shrinks

Submitted by ben (United States), Dec 7, 2009 16:26

The government subsidizes transportation because it is a public good. The gas tax does not pay the full cost of public roads and highways. City busses and subways are heavily subsidized. It would seem that if one was against Amtrak, he should also oppose other subsidies of transportation. However, transportation is a public good, and even those who believe in a very small government generally support the state spending money on transportation infrastructure (and defense of course). If Amtrak went under, would there be a private enterprise to take its place? If not, what would the spill over effect be on traffic, particularly in the heavily trafficked northeastern corridor?


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