It is almost impossible for urban passenger rail systems to break even, which must be why the Biden administration wants to direct 100s of billions of dollars towards them. From MN Gordon at economicprism.com:
How much does gas cost in your hamlet?
Here in the Los Angeles Basin the price of gas is now over $4 per gallon. One year ago, it was just $2.89. Could this be an example of what Fed Chair Jay Powell calls “temporary inflation?”
Maybe so. Certainly, supply will increase to meet demand. At the time of this writing, the latest Baker Hughes rig count shows 430 active drilling rigs. That’s 13 more rigs than the prior week. But 234 less than one year ago.
We have a hunch that Los Angeles gas prices in excess of $4 per gallon will be here until at least the fall – possibly longer. Especially now that California refineries have switched over to producing state mandated summer blend gasoline.
What’s more, gas price increases may also be a function of rampant money printing…in addition to rising demand. Thus, gas prices could go much, much higher.
President Biden, however, has a plan. On Wednesday he outlined it in his $2.25 trillion American Jobs Plan (to be later followed up by the American Family Plan). And if Biden, and his central planners get their way, we soon won’t have to use gas at all. We’ll all drive electric vehicles and ride commuter trains.
The largest spending item in the American Jobs Plan is transportation ($620 billion). Of this, $174 billion will go to electric vehicles, $85 billion to public transit, and $80 billion to passenger and freight trains.
Like all good central planners, Transportation Secretary Pete Buttigieg is a commuter train enthusiast. While Mayor of South Bend, Indiana, Buttigeig championed a new downtown station for the South Shore Line. The proposal’s massive price tag, and other factors, limited its development to merely expensive feasibility studies.
Indeed, South Bend taxpayers may have dodged a bullet. But with the American Jobs Plan, U.S. taxpayers may soon be funding such moronic proposals through to execution, in countless cities across the nation.
What follows is our own boots on the ground experience of what may be coming to a city or town near you…