Wednesday, March 16, 2005

Making a Statement

Be sure to get some mass transit: you're going to pay for it anyway. Actually, that attitude is a large part of why ppl who pay taxes demand stuff from the government: they think that demanding stuff the gov't doesn't already provide will come out of taxes they already pay.

P.J. O'Rourke in Opinion Journal:
The Heritage Foundation says, "There isn't a single light rail transit system in America in which fares paid by the passengers cover the cost of their own rides." Heritage cites the Minneapolis "Hiawatha" light rail line, soon to be completed with $107 million from the transportation bill. Heritage estimates that the total expense for each ride on the Hiawatha will be $19. Commuting to work will cost $8,550 a year. If the commuter is earning minimum wage, this leaves about $1,000 a year for food, shelter and clothing. Or, if the city picks up the tab, it could have leased a BMW X-5 SUV for the commuter at about the same price.
There is something about hiding the cost in the tax bill which makes advocates think stuff is cheap. And environmentally sane, instead of a grotesque waste of resources.

In a market economy, prices reflect the resources used to provide a good or service. If the resources used can't be recouped, the providers stop providing. That's a good thing. Prices are just shorthand for resources expended, so forcing ppl to subsidize the expensive stuff is literally wasting resources. And in the case of mass transit, it is wasting resources in the name of saving resources. I am told this is properly called "Making a Statement."

Now we canny taxpayers subsidize all sorts of transportation, and some argue that this is reason to subsidise others. I prefer to eliminate as many subsidies as possible so we can make rational choices based on our own preferences and the actual costs of the vaious alternatives.

I won't hold my breath.

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home