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Railroads and streetcars were hugely profitable in the US, until the government subsidized cars by:

- giving everyone high-quality roads

- setting road tolls to zero or almost nothing

- making dense housing illegal to build with zoning laws

- requiring businesses to provide free parking

- requiring home builders to provide free parking

- all the crap US does internationally to secure oil supply lines

- not taxing pollution, noise, or other car externalities

- enacting crazy regulations on railroads; for example, American railroads can't buy European trains, they must build their own custom-designed trains at enormous expense

and on and on and on it goes, all at taxpayer (or business owner) expense. An American on a road trip thinks cars are cheap because everyone else is forced to absorb the cost.



This is really fascinating. Do you have sources for this? I hadn't even thought about this side of the economic equation.


"The High Cost of Free Parking" Donald Shoup


And let's not forget how the streetcar stuff went:

http://en.wikipedia.org/wiki/General_Motors_streetcar_conspi...


In happy news, they actually broke ground within the last week in downtown Detroit to begin infrastructure upgrades required for the M1 (Woodward Avenue) rail project.




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