Multi billion dollar subsides subsidies. Markets are only rational when left alone, toss more than $425 billion dollars just to build something and then maintain it with government funds and efficiency takes a back seat.
FYI: a great deal of the funds for highways come in the form of tolls or gasoline taxes. A great deal of the cost of public transit on the other hand is subsidized by state and local sales taxes and income taxes. It is public transit that is subsidized in the real world not the other way around.
Anyway, public transit is not what I am talking about, the US rail system continues to exist due to efficiency not subsides. Passenger rail is currently a tiny and largely ignored minority of overall traffic.
Exactly. Why do you assume it can scale to the point that it can replace all other forms of transportation? Rail is only cheap and efficient because those are the markets they selected to service, it won't scale up.
If it can why not get some investors and prove everyone else wrong?