House Bill 422, No High-Speed Rail Money from Federal Government, has been under attack by major media outlets, special interest groups, and big-spending politicians in Raleigh. True to its name, the bill would prevent North Carolina’s Department of Transportation from spending federal grant money it receives designated for high-speed rail projects without approval of the General Assembly.
Indeed, these attacks have helped to de-rail the bill, so to speak. The bill was pulled from the agenda of the House Transportation Committee last week, which had scheduled a vote on the bill. The bill, however, is back on the House calendar for discussion this week.
The bill has been vehemently opposed by those who view this federal high-speed rail money as some sort of “free lunch” bestowed upon us from D.C. that will “create jobs” without any negative consequences whatsoever. In short, they claim the rail money is all benefit, no cost.
Those of us living in reality, however, know better.
Indeed, supporters of HB 422 recognize that there is no such thing as a free lunch, and accepting federal funds for high-speed rail will certainly come at a cost.
First, critics overlook the highly likely scenario that these rail projects will incur significant cost overruns. The latest such example comes from California, where a high-speed rail route was originally projected to cost $33 billion. Less than a year later, cost estimates for the project already ballooned to $43 billion, and that’s before the project has even broken ground.
Supporters of HB 422 are concerned about North Carolinians being forced to finance the inevitable cost overruns likely to occur in our state. And then there is the ongoing annual operating costs, as well as repair and replacement costs in the future. That’s one price we may have to pay for this “free lunch.”
But what about those jobs?
Indeed, many North Carolinians are out of work. But how do high-speed rail supporters know that the $152 million worth of rail projects in the Charlotte area, for instance, will “create” jobs in perfect concert with the nature of those unemployed in Mecklenburg County? Unemployed roofers, realtors and investment bankers laid off due to the bursting of the real estate bubble won’t be of much use laying track.
Thoughtful analysis suggests that the jobs “created” by the high-speed rail projects across North Carolina won’t just absorb those who are currently unemployed, because those who are unemployed are very specific in nature regarding their location and skillset.
Federal rail projects, however, will likely at least employ some labor and resources currently sitting idle. But this means that these workers and equipment will be tied up building high-speed rail, and be unavailable for private entrepreneurs seeking to start or expand businesses and help our economy recover. The lack of available labor and other resources will discourage new business activity – serving to prolong our recession.
No, there is no free lunch, and these rail projects will divert labor and other resources away from other uses. This is known as the “crowd out” effect, where productive private investment is bid away toward politically chosen endeavors. Thus, there are no jobs “created” by these government-funded rail projects. There is merely a change in the mix of jobs in the economy. And because politically-selected projects create less value by nature than private sector investment, another cost to North Carolina will be slower economic and job growth.
This country including NC needs a network of high-speed rail. We must now rely on roads (that need major updating and repair, but are funding starved by legislation sponsored by front groups such as yours), airlines both of which must rely on gas and both of which are not as efficient as rail. Mr. Pope and the Kochs have personal jets, cars and drivers and don’t rely on commercial air, Greyhound busses or long drives on pot-holed roads. They sure don’t rely on the slow, second class rail that serves the rest of us.
We need high-speed rail for travel to work, to cut energy costs and allow the middle class a modicum of transportation freedom enjoyed by the likes of the Popes and Kochs.
I am not a fan of how the President managed the stimulus. Paying to maintain government jobs that now must be funded by other governments was not the best approach. Building or upgrading our infrastructure, including improvements to the U.S. rail system, is a more appropriate spend of the money. It gets those who are unemployed in low skill jobs back to work and it builds for the future. There is risk to most everything we do. Thinking that the people put to work laying track, clearing right-of-way, driving the trucks to haul the rails and construction supplies will be in short supply IF and WHEN other such jobs come along is a weak argument at best. That is a risk most people should be willing to take. The important part of the work is making sure we don’t have 3 bureaucrats standing around while 2 laborers work hard at their new found jobs.
Conservatives have repeatedly asked Federal Governnment to cut spending. This includes states putting their hand out for Fed assistance in ANYTHING. Accepting funds from the Fed in always followed by more bureaucracy controls indirectly, if not directly, usurping states rights. A statement about efficiency of railway transport of goods vs. people is misleading. AMTRAK is celebrating its’ 40th aniversary and has yet to be self sustaining. Arguments presented that “middle class” citizens should enjoy transport ease in the manner of “upper class” are irrelevant. Transportation is a commodity. An enterprise for profit, not a gift. Citizens need to learn that government has no money. Our government is spending more than it receives in revenue. It has to stop, and funding for high speed rail is as good a place to start as any.
I agree with Art Wilson. If high speed rail was a good investment it would be in use and making a profit somewhere in this country. But it isn’t, not even in the most densly populated cities or running between them. It’s just another great idea that is too good to be true unless you’re naive and/or narcissistic.
Public mass transit will always require additional taxpayer subsidies and this is the real fly in the oniment. Amtrak is a perfect example.Ask the citizens of Mass. and NY and DC what it adds to their tax bill. This will not create jobs for NC citizens because the Feds will inevitably require experienced union workers to do the job. These few jobs will end up being very, very, very expensive for NC citizens. In states where this kind of mass transit exists, they are constantly being confronted by unions with demands on salaries and benefits, and shutdowns of service This is not a fight we should be willing to join. We already have far too much federal intervention in the business of the state.If there was a real need the for-profit community would build it just as Andrew Carneige did the railroads.