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The days of cheap gas are over. I don't understand why this concept is not hitting on the middle class of this country. It isn't about spending money RIGHT NOW. It's about making an investment FOR LATER because an unavoidable long-term trend is going to strangle us to death.
Food, energy and gas prices keep rising. If you are not a millionaire, this affects you deeply. Think of our current infrastructure as representing a fraction of the cost you pay every time you buy food. Currently that cost is diesel, trucks, tolls, depreciation on trucks, salaries for truck drivers etc. Highways, highway maintenance, relevant taxes, fluctuating oil markets, etc.
The price will never again go down. It's only ever going to go higher, and higher, and higher...
Also, when was the last time anyone here remembers air fare being very afforable, easy and efficient? Do you really believe it's going to decrease ever again? Tell me, when you buy tickets for this holiday season, if you like paying inflated prices. Because that is going to become the norm. And let me know if you see your wages rising soon to match that rise in time.
Three trillion is quite a bit, however. I'm wondering why so much. It's just a frickin' railroad; weren't we building these things in the 1800's? Have we just forgotten how to do it?
the gas does suck but it can be relieved.
as for trucks depreciating, that's not true. used trucks especially have seen a spike in prices, not because of "inflation" of anything but because of demand. look on autotrader or cars.com and you'll see late 90s-early 2000s model trucks with 150,000 miles going for $12,000.
Last edited by CelticGermanicPride; 11-09-2011 at 10:56 AM..
...All these things that we talk about for the future will not come into being if we worry about cost...the longer we wait - the more it will cost in the eventual long run.
That is what I've been thinking. Someone said that for it to be worth their while gas would have to be $10 a gallon...
So the thinking is to build the rail (if at all) when it costs $10 a gallon for gas?It will be exponentially cheaper to move equipment and materials when gas costs 3-4 dollars like it does now.
The construction of the line itself was probably subsidized from infrastructure bonds, etc. I believe the ticket prices are not subsidized, since the line runs at a profit.
That would be the same thing. Subsidized bonds for consruction of the rail line would enable a Amtrak to charge lower ticket prices than what they could afford in a free, unsubsidized market.
That would be the same thing. Subsidized bonds for consruction of the rail line would enable a Amtrak to charge lower ticket prices than what they could afford in a free, unsubsidized market.
That's not the point though. Even if Acela was a private enterprise they would get those subsidies, just as Exxon Mobil gets oil subsidies. There is not a single infrastructure project in this country that doesn't get any subsidies (this includes even totally private companies listed on stock exchange, like private prisons, etc). The main point is that maintance and operating cost of Acela are NOT subsidized.
That's not the point though. Even if Acela was a private enterprise they would get those subsidies, just as Exxon Mobil gets oil subsidies.
No, because not all private enterprises enjoy government subsidies.
Exxon is profitable without subsidies, Amtrak is not.
Quote:
There is not a single infrastructure project in this country that doesn't get any subsidies (this includes even totally private companies listed on stock exchange, like private prisons, etc).
No, because not all private enterprises enjoy government subsidies.
Exxon is profitable without subsidies, Amtrak is not.
What subsidies does Fluor get, for example?
Interstates? If you have a product, you need to get it somewhere. I have a hard time believing that Wal-Mart, along with any other large supplier of goods, would have a lot harder time making as much money without the roadways and interstates to connect suppliers to stores to people.
If you have a product, you need to get it somewhere. I have a hard time believing that Wal-Mart, along with any other large supplier of goods, would have a lot harder time making as much money without the roadways and interstates to connect suppliers to stores to people.
You apparently define "subsidy" differently than I do.
If everyone can use it, it's not a subsidy.
With the Acela track, Amtrak is receiving a special group of benefits that do not go to just any company. Describing their net revenue as "profit" is nonsense.
With the Acela track, Amtrak is receiving a special group of benefits that do not go to just any company. Describing their net revenue as "profit" is nonsense.
profit = revenue - expenses
Acela Express stats:
Revenues: $440 million
Expenses: $308.8 million
Profit: $131.2 million
Average profit: $41 per passanger.
Average profit for Amtrak total: -$32 per passanger.
Acela Express stats:
Revenues: $440 million
Expenses: $308.8 million
Profit: $131.2 million
Average profit: $41 per passanger.
By this logic, when the government runs a surplus by taking in more revenue than they have expenses, that's "profit."
Amtrak is just a government agency that pretends it is a company. It's like talking about Fannie and Freddie's "profits".
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?It will be exponentially cheaper to move equipment and materials when gas costs 3-4 dollars like it does now.
