When you work in public policy or economics, you come across policies and programs in various countries in Europe and elsewhere that are innovative and/or that have otherwise have stood the test of time. Still, the above doesn't mean they'll be implemented in the U.S. That's because the American culture and system presents its own, unique challenges and restrictions. Where else can one person -- 1 U.S. Senator -- stop the democratic process, thwarting the will of the majority, the will of the people?
Marketwatch.com Chief Economist Irwin Kellner mentioned one idea that's Europe-esque -- a policy that would not stand a chance during robust economic times -- but one that may gain support, due to the recession.
Kellner's 'radical' idea? Make mass transit free. That's correct: free.
You'll take the 'A' train
Now before you accuse Kellner of having met in Greenwich Village with Lenin and Kalinin and the rest of the Bolsheviks two months ago, here's his argument: across the U.S., cash-strapped mass transit systems are doing what they should not be doing: raising fares at a time when riders are already being pinched by rising prices, property taxes, and transportation expenses.
The transit systems feel that have no other choice but to raise fares (and cut services), but Kellner says this is having an effect the U.S. economy least needs right now: it's further reducing consumers' disposable income.
Kellner's solution: Eliminate the fares and use federal funds to make up the difference. The idea is not as outlandish as it appears: most transit fares account for 30-45% of ridership cost, with the rest made up by state and federal funds.
The benefits of Kellner's free ride? You guessed it: increased disposable income for consumers -- something adults could no doubt use, and something that's sorely needed by the U.S. economy right now.
The plan would also have the added benefit of encouraging mass transit use (reducing traffic congestion) while lowering oil/gasoline consumption -- and the federal government would generate that increased efficiency without paying to laying one new mile of subway or light rail track and/or buying one new bus.
Economic Analysis: Economist Kellner's free mass transit idea has merit on a number of counts. Especially relevant is the stimulus impact: it would be tantamount to providing additional fiscal stimulus, instantaneously, to millions of citizens, with the federal government later reimbursing the states and localities. It would also encourage more people to keep their cars off the road and use mass transit for work (and perhaps for other activities), and decrease the nation's carbon footprint. Kellner's idea is worth a review.
**
What's your view of free mass transit? Let us know what you think.
Before the bell: Futures sharply lower on Dubai's debt problems
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Reader Comments (Page 1 of 1)
2-17-2009 @ 6:53PM
Salsa Shark said...
Where do the funds come from for maintaining and building out the infrastructure? In Chicago, the tracks are in horrible condition...
2-17-2009 @ 7:15PM
Libertarian Girl said...
So we're bailing out the auto companies when auto sales are at a low, then we massively subsidize mass transit so that more people won't buy cars?
That sounds like a firm, solid financial decision that our grandkids will be proud of!
2-17-2009 @ 8:52PM
eMax said...
This is an interesting idea, however I doubt it will happen.
I was in the post office today around 11am with a huge line of 30 people waiting for service and only 1 Post office worker working the line.
I get up to the front of the line and ask: "Is there anything I can do as a customer to get you more help, this isnt the first time its been like this recently"
She replies:"Help the economy, they just told us the payroll is going to run out in November, so the last 4 weeks of the year will be unpaid, I guess they were telling me to look for a new job"
Now I dont know the details, but if the US Postal service cant afford to have more then 1 clerk in a post office that is constantly busy, AND not install one of those automated postal machines, then where is the government going to get the money to pay the MT Employees?
2-17-2009 @ 9:32PM
MatWith1T said...
As a NYC straphanger, I don't see this happening - major metropolitan transit authorities are quite content with the status quo of collecting massive public funding to pay their private-sector salaries to executives.
2-17-2009 @ 11:23PM
sww said...
The biggest problem is the defined pension plan that most public transit system for ex. in San Francisco BART, the price had been double last couple years but still they are having budget deficit the main reason - pension. I knew people that taking 80K/year after retired, how many ticket you'll need to sell to pay for a guy that is not working? It should be 401K for all government jobs.
2-17-2009 @ 11:29PM
sww said...
Post office system - same thing. No defined pension, only 401K so our grand children do not need to pay for all these people that happen to get the 'government jobs'.
2-17-2009 @ 11:59PM
BHarrison said...
The only bastion of overpaid retirees (compared to other "average Americans) after the UAW and other "union employes are the government employees, and their rather cushy retirements.
The government workers have been "double dipping" by being able to retire after 20 years, OR LESS, service, and many, if not most of them do NOT pay for social security; but they are able to draw social security. Perhaps there will definitely have to be a massive restructing of the city, state, Federal, and USPS employee retirement programs . . . just as will be done to the UAW and other union retirees. OUr nation simply can no longer afford to pay for such exorbitant retirement programs.
The same is true for Congressmen . . . who just recently voted themselves a pay raise.
The retirement benefits of policemen and firemen in major metropolitan areas is exceedingly to astronomically HIGH. This has to be adjusted also. The whole system and level of pay and retirement benefits is going to have to be substantially revised.
. . . and our Congressmen who "sold out" to the special interests groups by enabling and allowing the corporate FRAUDS that have collapsed our economy . . . and the CEOs who orchestrated and perpetuated those corporate FRAUDS are all STILL in power and "running the "recovery" show; and "gaming" the bail out system.
When will the American people reach the end of their tolerance for all of this corruption?
2-18-2009 @ 12:19AM
Iridium said...
I live in the city that was voted to have the best public transit system in America.
I wouldn't be caught dead riding in any train or bus. In fact if I did I might wind up dead.
The mass transit system only exists to carry welfare moms to the store to spend foodstamps. To also carry people from the ghetto out to high dollar shopping malls so they can rob them blind.
The only thing a free bus line would do in my city is the destruction of middle calss neighborhoods by exporting inner city crime.
2-18-2009 @ 12:57AM
mail said...
Iridium, you really should get out more.
It's a great idea, but probably full of unintended consequences. I ride the bus to work (not on welfare just yet) and recently we had a snow emergency, which makes the buses free. Unfortunately the transit fees act as a kind of filter to discourage antisocial behavior -- during that snow emergency our bus was stopped and the police had to come to escort someone off. If you have to pay a fee, only those will ride who have someplace to be.
2-18-2009 @ 2:12AM
Master Shake said...
WHAT public transportation?!?! With the slight exception of New York, there isn't another city in America that has anything even REMOTELY functional as a public transport system. You think making it free is going to help? HA! You know why cheap or free public transportation works in Europe? Because WE ACTUALLY HAVE WORKING SYSTEMS. Within a hundred feet of my door are small buses that come every 3-4 minutes. Takes about 2 minutes to be whisked to a subway station where trains come every 90 seconds - six lines that cover the city, and connect to other lines that go to other cities every few minutes. The trains are NOT covered in graffiti, and there are NO gang members roaming around. Because the police actually deal with crime that matters, instead of trying to turn a profit with tickets for parking and minor traffic violations.
2-18-2009 @ 2:12PM
thedude said...
@mail - you are oh so sadly correct ! I spent a few months doing photo essays of mass transit systems in various cities and those "huddled masses" can be quite an experience
Mass transit is readily available in every major city yet there are millions of people who choose to pay $300/month+ for car plus exorbitant parking rates and insurance rates just for a little more convenience and to avoid the "unwashed masses" on public transportation.
In order for public transportation to work effectively towards reducing traffic you will have to be able to provide a "personal zone" so peoples "space" can't be infringed upon and you will have to make sure all passengers are polite and clean.
We have a big enough problem with inconsiderate people and "road rage". Can you imagine if some of these jerks were stuck on a bus next to a smelly drunk and some screaming kid who is being ignored by his welfare mom because she is too busy yakking on her cell phone about her latest hair extensions
No you will NEVER sell a car owner on mass transit.
3-20-2009 @ 6:05AM
fpteditors said...
read more at...
http://freepublictransit.org