Rails to nowhere

Begin in Washington. [Link]

So why is Obama still so determined to push the high-speed boondoggle? Largely it’s a deadly combination of theology and money. Powerful rail construction interests, notably the German giant Siemens, are spreading cash like mustard on a bratwurst to promote the scheme. Add to that construction unions and the ever voracious investment banks who would love to pocket fees for arranging to sell the bonds and you have interests capable of influencing either party.

Then there’s what might be called the “density lobby” — big city mayors, construction firms  and the urban land owners. These magnates, who frequently extort huge public subsidies for their projects, no doubt think it grand to spend billions of public funds on something that might also increase the value of their real estate.

And finally there are the true believers, notably planners, academics, green activists and an army of rail fans. These are people who believe America should be more like Europe — denser, more concentrated in big cities and tied to the rails. “High speed rail is not really about efficient transport,” notes California transit expert and accountant Tom Rubin. “It’s all about shaping cities for a certain agenda.”

Yet despite their power, these forces face mounting obstacles. As transportation expert Ken Orskipoints out, the balance of power in the House now lies with suburban and rural legislators, whose constituents would not benefit much from high-speed rail. And then there are governors, increasingly Republican and conservative, very anxious not to add potentially huge obligations to their already stressed budgets.