Transportation issues will be critical to the health of 21st century U.S. economy

Posted Aug 7th 2008 4:21PM by Joseph Lazzaro
Filed under: Forecasts, Other Issues, Politics, Commodities, Oil

Given the smorgasbord of economic demands and concerns -- domestic and foreign -- likely to face the new U.S. president, investors (and taxpayers) can justifiably ask 'Where's all the money going to come from to pay for these programs?'

Legitimate question, but one, for now, we'll let the political process sort out. (Current Gallup Daily Tracking Poll as of August 6, 2008, for the U.S. presidential election: Obama, 46%, McCain, 44%.)

Electing U.S. Sen. Barack Obama, D-Illinois, or U.S. Sen. John McCain, R-Arizona, will produce different programs and revenue priorities, due to the parties' different sources of power, but the argument forwarded here is that -- regardless of who becomes the new president -- the office holder should address transportation in a comprehensive way. Here are the major concern areas:

Mass transit: We're early into the $4 gas era, of course, but initial U.S. Department of Transportation data indicates Americans are driving less and using mass transit more. The trouble is, many mass transit systems (rail, commuter rail, subway, bus) need to be expanded/upgraded to handle the increased ridership. Bigger, better mass transit systems will save the United States hundreds of billions of dollars in oil costs, not to mention the environmental benefits.

Next-generation vehicle propulsion: The nation, and the world, is flirting with its third oil shock. Oil prices, of course, could continue to decline short-term (particularly if the global economy slows), but very few oil analysts think we'll see another era of cheap oil. From a cost standpoint (among other benefits), it makes sense, then, for the nation to re-double efforts to develop a next-generation propulsion system. Currently, next-gen technology is a morass (electric cars, hybrids, natural gas vehicles, alternate fuels): the new president must determine what represents the most-efficient, widely-applicable, domestic-based technology and allocate public research dollars to bring it to fruition.

Air transportation: Flight will play a larger role in twenty-first century transportation. Unfortunately, the nation's airports and air traffic control technology are not equipped to deal with today's air traffic, let alone the increased flight traffic that's ahead. The new president must commit to building more runways, more airports, and implementing air traffic control technology capable of safely handling tomorrow's increased flights and passenger volume.

Transportation Analysis: The above three represent formidable tasks for the new U.S. president, and that's just transportation. Still, undertaking them will have the added benefit of creating millions of good, new jobs in construction, industry, technology, and in many other sectors. Further, given the connection between transportation costs and U.S. GDP growth, the investments will, in the final analysis, prove to be money that is well spent.

Tags: airlines, airports, buses, business travel, cars, climate change, commercial aviation, commuter rail, electric cars, environment, gasoline prices, gdp, hybrids, leisure travel, mass transit, McCain, natural gas vehicles, Obama, oil prices, oil shock, OPEC, railroads, subways, transportation, travel, U.S. economy, vehicles

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Reader Comments (Page 1 of 1)

8-07-2008 @ 5:30PM

william lindblad said...

Joe, you are in dreamworld and political rhetoric has been around for a LONG time.
Do a reality check - 1st anything and everything has to pass CONGRESS. 2nd it has to pass the litmus test - E pluribus unum.
If they did not teach you what this means in latin it roughly translates as one in/of many AKA the sans culotte, or as we call it, the public. Except for mass transit in major cities, public transit has been a dead duck since the model "T". If anyone asks the U.S. citizenry to give up their vehicles and their independence you can bet the response will be the fickle finger of fate - you know, the middle one. If you were born here, you must have seen this at least once - (as a receipient). All jabs aside, the rail system is dead, like the ocean liner. The liner the United States still sits up the river from Norfolk and that was the last as air killed this area.
The next generation vehicle? You expect me to trust someone who most likely cannot drive a stick shift??? I don't think that either candidate knows more than where to put the key, don't expect them to be up on what makes it work. While there are many techonologies out there, the oldest and most practical is electric. Why? Because it is the easiest and cheapest If one can plug the damn thing in, you don't have to re-build infrastruture. We already have gold carts that make 55+ miles with a solar rig on top. The only big obstacle is a battery that can stand up to cold climate. The French have a pneumatic car that is actually being produced. That has possibilities as air does not care about hot or cold too much.
As to the air lines, they are dependent on fossil fuel/jet fuel. If the price stays up this type of travel will be for the rich only and subsequently, air traffic controllers will not be a major problem.