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Sunday, April 8, 2012

Amtrak Trains Run on Red Ink

A darn good reason for the government to just sell Amtrak. Taxpayers have subsidized it to the tune of $40,000,000,000.  Yet, for reasons unknown it remains a sacred cow in the District of Crime.
Amtrak has absorbed $40 billion in federal subsidies over the last 40 years. It has never earned a profit. How many people ride the trains? They account for one-tenth of one percent. This is a boondoggle. It has been since day one. Then there is fraud....During the 2000s, Amtrak averaged annual losses in excess of $1 billion. In 2010, Amtrak received $563 million in operating subsidies and $1 billion in capital and debt service grants. The American Recovery and Reinvestment Act of 2009 pumped an additional $1.3 billion in capital grants into Amtrak.
Read the rest here
The Tea Party Economist