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Off the rails

October 26, 2010

The federal government has decided to spend $218 million that it doesn't have on railroad track repairs between Chicago and Iowa City. The State of Iowa will throw in $20 million it doesn't have, all to enable Amtrak to start losing money forever at $42 per ticket to run trains that will take five hours to make the trip, on the occasional day that Amtrak is on time.

This is because it is important to provide a less reliable and more expensive alternative to the Megabus, which, with federal subsidies of $0, runs comfortable and reliable coaches with wi-fi on the same route in four hours at costs of $1.50 to $36. And it makes money.

Does anyone believe it will really cost "only" $218 million? And they wonder why people aren't excited about tax increases.

Flickr image courtesy Hunterrrr under Creative Commons license