Fares of MTA are higher than those of ATM in Milan, the service in Milan is excellent and it covers the operating costs through fares.
They are so good that have also built and now maintain the subway of the city of Copenhagen and over 100 buses and train lines in the province of Milan.
Prices are super regulated and recently fares have gone down for long distance commuters and slightly up only for casual passengers (one way tickets, tourists fares)
The company makes profits that go back to the city which in the end benefit the citizens
“Nobody knew what those people were doing, if they were doing anything,” said Michael Horodniceanu, who was then the head of construction at the Metropolitan Transportation Authority, which runs transit in New York. The workers were laid off, Mr. Horodniceanu said, but no one figured out how long they had been employed. “All we knew is they were each being paid about $1,000 every day.”
https://www.nytimes.com/2017/12/28/nyregion/new-york-subway-...
I take MTA subway every week day and at least once a weekend. On weekends, you'll see workers repairing or doing maintenance on tracks because .... Hurricane Sandy (circa 2012) apparently destroyed the infrastructure. I mean I moved to NYC in 2016 and that maintenance has been going on every weekend since then (probably it started even before 2016). Some of the trains will not run or will skip over some local stops and it really inconveniences millions of commuters every weekend. The trains are supposed to slowly move around the areas worker are 'in action' (I read somewhere that it's because a few worker died by being hit by moving train, so they now require trains to move very slowly while blaring horns to warn workers ahead; I still felt that's unnecessary unless there's a clear distinction between which line workers operate on and as long as these workers are smart enough to not encroach on the active lines. Anyway, enough about that). While the trains move slowly, I see a lot of workers simply just sitting around or doing nothing.
The same is true on the 9th ave x 50+th street area where there's active water sanitation department's work going on. I walk along 9th ave every weekday morning and there are a lot of idle 'workers' who are probably supervising. I'd say only about half of them are doing useful work while others sit/stand around and chat.
No wonder these public projects take years to finish and have budget overrun. No wonder the US can't compete with other countries (ahem, like China and anywhere in Asia) where workers have better work ethics. The US blue collar workers like to complain about their diminishing salaries and industries, but they won't be able to compete for long while their counterparts in other developing regions are working harder.
It took me next to nothing to get a license in the US. In Germany, it took me months with a minimum set of mandatory lessons required by law - theoretical and practical.
I also don't think the argument about needing a driving license asap on the country side works because it is the same in Germany. Only major cities truly allow you the be car-free. Public transport elsewhere can at least be spotty if not outright disastrous and comparable to the US.
Some of the reasons are:
- When the site is active they often have a need to hold traffic or otherwise alter the traffic pattern to move equipment around. An excavator swinging an arm through the travel lane, loading a dump truck with debris that might fly around a bit, etc.
- The two guys are more efficient than the portable light at moving traffic volumes, since they can extend/shorten cycles as they see fit, and don't have to add in a big extra margin for the last, slowest possible vehicle to get through the work zone. They can see when it's cleared and let traffic through the other direction immediately.
Interesting anecdote: I was driving through North Dakota this summer and hit resurfacing roadworks. It was the first time I've ever seen it, but rather than setting up hundreds of cones and directing traffic through them, then re-arranging the cones to do the other lane, they just had a flagman on each side and a pilot vehicle guiding 10–20 vehicles at a time through the work zone. No cones at all. I'm sure that project was completed in half the usual time.
This looks bad, and some of the time it is just inefficiency, but in many cases there may be a series of tasks, dependent on each other, some of which require a lot of laborers and some that don't.
It's often better to employ a welder for the day than to stop work entirely when you don't have one milling around on site waiting for their next task.
Some groups have this down to a science for their particular industry (say, Apple supply chain logistics) and others aren't even aware of the issue and pass it off as expected.
It would be an interesting study to get queuing theory people, lean experts, or some such qualified group to look into public construction and maintenance projects to simulate and analyze optimal vs. actual. No question this would be very hard to do because unions hate this kind of thing and people don't like being measured over their shoulders and the basic implication that they're "lazy" or inefficient or whatever. (it's hard to measure and improve worker output while actually making the worker happier too because there tends to be a Stanford Prison Experiment vibe where you get managers nitpicking lunch breaks and the basic pleasantries of working instead of bulk errors like allocating skill sets)
It could be fairly straightforward to compare the efficiency of the same task in both countries.
You say that as though the policies and procedures by which worn is done haven't intentionally been made inefficient to create work for the workers.
I once sat on a train for 3hr waiting for a railroad employee to show up with a chainsaw and cut a downed tree of the track. There was another employee in a service truck equipped for brush clearing a couple miles away at the station waiting for his wife who was stuck on the same train. He couldn't clock in and deal with the downed tree, because rules. This story is fairly well known among people who ride that rail line so some here may recognize it.
One of them has a lookout at each end, who alerts the workers whenever a train approaches. Work stops until the train has passed, because the distraction caused by operating loud and heavy machinery is ao high. (The train only sounds the horn once, unless the driver fails to see an acknowledgement from the lookout.)
However, this isn't really practical on a busy line like a metro, so they'd much prefer to work overnight with the line closed if possible.
It's also possible to fence off the work area from live tracks, but installing the fence is then the disruptive work.
> as long as these workers are smart enough to not encroach on the active lines.
That attitude is completely at odds with the European approach to worker safety.
(I cannot comment on whether either point applies to the USA.)
As an example, there's are descriptions of the failures of the safe working system in the reports of accidents, such as this one: https://www.gov.uk/government/news/report-122019-near-miss-w...
It is unavoidably dangerous, and planners are supposed to choose it only when other options aren't practical, but in reality they often pick "Open line" for convenience. For example maybe the workers would prefer to do this on Tuesday midday, so we plan it as "Open line" and schedule it for Tuesday 1145, rather than for 0400 on Thursday when we can just shut the line to do it safely. This gets people killed, but because it doesn't reliably kill the specific people you scheduled most of the time it feels OK to them and to you.
This is also why unions aren't enough to implement safety. Unions represent workers and the workers feel like convenience is more valuable than safety. A 1-in-1000 chance to die, for five minutes extra coffee break is a good deal, until you're the 1-in-1000 and then it sucks. In the UK signaller unions fought very hard to continue working 12 hour shifts instead of maximum 8 hours. Because working 3x 12 hour shifts and then the rest of the week off is _convenient_ even though it was excessively dangerous if anything goes wrong.
So the thing that doesn’t seem to work in the US is the “hold them accountable”-part. Maybe public transport quality just isn’t an issue the typical US voter considers their business?
Democracy lives from everybody’s attendance — if you stay at home you got no right to complain.
Sadly even a strong faith in the invisible hand-shaped market-god doesn’t change that, because quasi monopolies like railway infrastructure and the invisible hand-shaped market-god never mix as well as promised for some weird reason.
If someone abstains from voting because they find all the choices equally unqualified, I don't think that eliminates the person's right to complain nor does it diminish the validity of their complaints.
Why is America so bad compared to them?
Some counties in Europe have seen their former very nice state run public transport systems seen completely deteriorated over the past decades once sold out to the so-called 'efficient' private sector. I'm putting in 'so-called' as in practice they still receive close to as much in subsidies as the state-run enterprises they replaced, but now only serve cherry picked parts, most often with lower quality, and divest the required upkeep investments in infrastructure into separate businesses that are completely reliant on public funding.
There is a real myth about the effectiveness of private enterprise vs public enterprise.
Large private companies are not more efficient than a comparably sized public endeavor. Small companies can be, but that is systemically only true if you ignore the waste of 99% of the 'competitors' that are perpetually failing.
Doesn't Germany have proportionally an even bigger car industry?
> Some counties in Europe have seen their former very nice state run public transport systems seen completely deteriorated over the past decades once sold out to the so-called 'efficient' private sector. [...]
Most public transport used to be private in the 19th century and was nationalized as a combination of cash cow and for military purposes.
The graphs on https://en.wikipedia.org/wiki/Impact_of_the_privatisation_of... look pretty good.
It would be interesting to see how successful governments manage promotion of talent.
Result: It's difficult to run government services well, when we do such a poor job of picking good people to run the government.
Take California DMV for example. The DMV is led by state governor appointees. No governor will be voted in or out office based on DMV improvement performance. Running government services well hardly ranks in voters minds
If you think everyone in the private sector is 'profit-driven', and you don't mean 'personal gain driven', which is the larger the company the less likely to be aligned with or incentivized by the benefit to the enterprise, I'm guessing you never spend time in such environments.
"better work ethics"? I prefer "unfair competition and dumping enabled by sometimes outright slavery".
That's the problem with most of the current free-trade agreements, they do not contain anything to protect the respective weaker parts getting exploited. As a result, scandals about child work and slavery conditions (e.g. in China) are commonplace, while at the same time European/US people lost millions upon millions of jobs because there was no way they could compete with what is essentially dumping.
To those of you, I ask - why?
New York's flat non-distance based fare is one of the great democratic institutions of the city. Whether you live in Flushing, Rego Park or Gramercy; whether you ride one stop or make four transfers - you pay the same fare. The only way this can work is if those of us with more wealth take care of those of us with less. What seems wrong about this?
The hourly rate of a great part of the city workers is below 3$ and do not have full day employment.
What do these numbers mean? That a worker can get a 3.5$ an hour for 3 hours a day on the other side of the city will do it because it will cost him 0.6$ a trip. But if he had to pay 2$, that worker might not do it.
He doesn't have the choice now: he pays a tax when he buys food that forces him to take long trips to make a difference in the subway.
Overall result:
Economic efficiency: bad, because it costs more to do it this way
Welfare: bad, because it increases commute times, and reduces wages
Transit & demographics: bad because it concentrates people on the expensive side of town and increase transit exponentially
If you price people out of the trains so they start driving cars again or even taking busses you are suddenly losing a huge amount of volumetric efficiency in your transit system.
Optimal cities can get almost everyone anywhere either walking, biking, or riding train all the time. Any requirement for road bound vehicles is an infrastructure failure of city planning. There are exceptional circumstances (moving heavy items that can't be carried) but they should be just that - exceptional, and rare.
Discouraging people from working where they live is the worst inefficiency you can create.
I used to travel, in Philadelphia, from a Main Line-adjacent community, on a bus to 69th Street Station, and then on the Market-Frankford Line, and then switched to the Broad Street line, all the way up to Temple U. for a $10/hr job, on a $1.30 token plus a $.60 transfer, each way. That's outrageous. I was mooching off the system, and my employer was mooching off the system as well. If they made me pay higher fares, well, I could afford it. What's an extra $3.80 when you're making $10/hr? At that wage, it was a small fraction of the time spent commuting.
Shall we introduce peak pricing to fire trucks as well?
how is it progressive, exactly? seems like it’s just another tax on the poor who have to get to jobs at exact times.
Presumably rush hour commuters could afford more than others.
Maybe that's an incorrect assumption but if all we can do is time slice, I would expect rush hour commuters to have the most means.
Sure, there are some working poor who need to be in the office 9-5, but the majority of people working full time regular hours aren't poor. And for people who can't afford the increase, you just introduce an exception (if you make under $40,000 per year you don't pay the increased fare, or something like that)
The question is if the benefit of more revenue and environmental savings warrants making the secretaries an cashiers adapt to less efficient schedules (eg come in earlier, stay later)
Increasing capacity would also result in taking more vehicles off the road.
Peak fares to encourage people to work non-peak hours if possible can shift demand enough to mean you don't need build more transit now saving a lot of money now. Eventually there is no substitution for building more, but better utilization can ease that somewhat.
There are are a lot of similarities with road congestion pricing going into effect in San Diego and NYC, and planned for LA and SF. Who will bear the greater burden, high earners who can easily pay the fee or low earners with rigid schedules.
It's pretty easy to deduce that there is an anticorrelation between ability to adjust riding schedules and ability to pay increased fees.
I think that the whole narrative around trains needing to justify their cost based on fares is ridiculous. Few people ride trains for the experience of riding a train. They ride to go somewhere, and do something, and the real value of the fate exists outside the transportation system.
I think Japan, and HK got it right by letting train companies act as real estate developers and build out the areas around stations. That gives them enormous profitability since they can charge rent, commissions for the stuff that people actually care about - what’s at the destination - and literally funnel people in the millions to their shopping centers, office complexes, and apartments.
This is becoming less relevant with the increased prevalence of contactless pay as you go systems. (Although the newer systems tend to be more complex for irregular users like tourists.)
Now in a system the size of NYC you probably should do something, the person only riding a couple miles shouldn't pay as much as the person riding many miles (I'm not sure how you can get in NYC). However a simple easy to understand system of fares is important and very hard to design. Part of that needs to be a guaranteed maximum you will pay in a month - with the idea that a significant portion of users will hit that maximum - when you know you will hit the maximum you are more likely to take transit in off-peak times even though you have a perfectly good car.
If you find different prices for different services confusing, how do you grocery shop?
It is certainly correct that having fixed fares across time and distance is a government subsidy which arguably may even effectively target poor riders.
The lack of a subsidy is fundamentally not the same as a tax.
But when a subsidy distorts the market to the point where it causes inefficiencies in the market, those inefficiencies can undermine the value or effectiveness of the subsidy, sometimes altogether.
I.e. lack of peek pricing causing massive ridership spikes at specific hours overloading the system and making it break down.
A theoretically better system might be one with a fixed monthly fare credit for low income riders, while also having peek pricing. This shifts demand to keep the system running more smoothly while also making transit more affordable for lower income riders.
But then, why not ask the question, if we’re giving money to low income riders, why give rebates only to low income people who ride the train? Why have a low income subsidy specifically for subway ridership versus any of a dozen other things people fundamentally need. Why micromanage to that level?
Fares in Osaka or Tokyo are ~$2 per 3-4 stations from your departure point. Riding to Kyoto from downtown Osaka (40km) is ~$8 and 8 stops across two lines. The prices overall are low (IMO), and Japan has lower wage inequality than the US (IIRC).
Even when you add in externalities (climate change, etc.) road subsidies are about $0.10-0.20 per passenger mile. (Of course, electricity on the east coast isn’t generated from renewable sources, so you have to add pollution externalities to the subway too.)
Roads are cheap and not heavily subsidized when you account for how many people use them. There are pollution externalities, but those can be addressed by mandating electric cars without changing the basic structure of everyone having private vehicles.
NYC for example has over 6,000 miles of road * a very conservative 60 feet ignoring sidewalks is ~40,000 acres or 20% of the city. Central Park by comparison is only 842 acres. As Property taxes add up to ~55 Billion per year that’s (55/.8*.2) ~= 13.8 billion in lost revenue per year.
There are of course options to build more roads underground, but then they start costing as much as subway systems.
> Roads are cheap and not heavily subsidized when you account for how many people use them.
[citation needed]. You haven't said that fraction of road costs are covered by subsidies (e.g., by property taxes). I suspect it's a substantial fraction.
Your whole point depends on the fact that almost everyone uses roads and of course everyone uses roads when there are no great alternatives. If things were structured differently, the same could probably be said for other transit options.
Bike lanes. for instance, are ridiculously cheap from every perspective, have none of the externality costs you mention, but no one can bike safely as of now and therefore much fewer choose to do so than the infrastructure could support.
Biking is cheap only if your time is worth nothing. It’s also untenable given the climate of most of the US (much wider temperature variation than in Europe where biking is more common), and the physical fitness of your average American.
How much would an equivalent amount of road capacity cost in NYC?
(For the sake of argument, ignore the fact that such an insane amount of road capacity is probably physically impossible in NYC without knocking down half the city)
Is New York any different?
And a dozen or so States have increased fuel taxes in the last 5 years, so maybe the trend is starting to reverse.
It also includes sales taxes, excise taxes, registration fees, and tolls.
From yesterday;
If this is in fact the case, I don't think it's a bad thing. The problem in that case comes from double standards, where the ground-level understanding of how society operates includes costs incurred by individuals/businesses which effectively disappear into a vacuum rather than being directly paid/passed onto customers, yet is used as evidence of the completely natural and inherent utility of cars over alternatives.
For a different doc more directly about who pays for roads, I've found this one useful. Made by a so-so thinktank, but seems well-sourced and rigorous.
https://uspirg.org/sites/pirg/files/reports/Who%20Pays%20for...
Trucks on last mile delivery are invaluable for some deliveries, as you mention, but then... why else does any other vehicle need to use most streets? Is it reasonable for someone who orders a truck to pay 33% of the cost of that truck on the road? What about 0%, or 100%? Which is best?
In cases where alternatives to trucks or cars are less costly overall in some situation, or additional efficiency can be achieved with batching, how much of that is ignored because of these accidentally created incentives? Not even mentioning the indirect cost to communities (walkability, clean air, autonomy of disabled people).
I don't have the answers, but I think these are good questions to be asking. For the specifics of policies, we need to base that on data ofc.
simply put, living in town is not financially or socially viable for many and the freedom afforded by auto ownership is not giving the value is vastly underestimated by those who would restrict their use by others.
as with most lifestyle conversations it is far easier to score internet points with altruistic comments let alone being part of the clique. about as useful as hashtag diplomacy
That's what excise taxes are for. For example, in my town, we spend $1.2m on highway maintenance, and $450k in snow removal, while collecting $2.4m in vehicle excise taxes.
There is also about $60k in fines income, but it doesn't break down exactly how much of that is vehicular.
The whole point is to keep the water away from the dirt, and when it's not possible, minimize (distribute) loads from the tires across as large as area as possible.
They tested alternatives extensively in the 50's, driving trucks in circles on different test tracks for literally weeks and months at a time. As poorly planned as some people believe the interstate system to be, the government didn't throw billions of dollars at it blindly.
Remember I carefully excluded everything except delivery from roads - this is horribly unrealistic. You can call it a strawman.
Trucking is responsible for transporting roughly 12 billion tons of cargo annually, with an estimated value of $9 trillion dollars. As a total share of goods transported by value, trucking makes up about 70%, and 60% by weight. The trucking industry employs 10 million people (3.5 million of which are drivers), and directly contributes to about 5% of GDP, to say nothing of the share of GDP which indirectly depends on trucking, which would be roughly... all of it.
The United States' $20 trillion GDP is entirely dependent on a functioning and well maintained highway system, and it is absolutely irreplaceable as a means of economically and rapidly transporting goods throughout the country.
In that context, the roads that regular everyday taxpayers get to drive are basically free and paid for, because most of them would have needed to be built anyway for the basic provisioning of goods and services, health & safety, building materials and as a right-of-way for water, sewer, electrical, data, and communications infrastructure.
The fact that tax revenue from cars & trucks pay for the cost of their infrastructure is true regardless. IF you want to analyze externalities, please by all means, take a tally of all positive and negative and show me the balance.
If you want to talk about externalities, you have to have a clear-eyed analysis of both positive and negative externalities. It's a very difficult analysis, because they both total in the trillions of dollars. I'd welcome a well researched scientific paper on the subject.
But since they are very visible, very direct taxes (And in addition to them, you have to pay for gasoline itself, insurance, parking, etc), drivers who have not done the math mistakenly believe that they aren't being subsidized.
1. Ignored the amortized cost of all that roadway construction. You can't just look at maintenance costs.
2. Ignored the state and federal funding that went into it.
3. Ignored the cost of 'free' parking.
4. Ignored the cost of highway and parking enforcement (If you have even one officer doing it full-time, the fines don't pay for it.)
5. Is quite atypical.
2. State & Federal funding of highways currently totals approximately $175 billion per year. I think inflation adjusted that has been fairly steady of the last half century. It's one of the few things where government spending has actually remained constant. [2] Income from fuel taxes has been reducing over the last decade, while income from sales & excise tax has been increasing.
It's reasonable to project that for the last several decades that infrastructure costs have been more than covered by vehicular income, and will continue to be covered for the forseeable future. Setting policy for today and tomorrow should be based on the facts of today and tomorrow.
It would be claiming more than I need, to state that vehicular direct revenue has always exceeded direct expenses, when we can at least clearly state this was true for the last decade, and the next. Economically speaking, it would be extremely costly to reduce the utilization rates for infrastructure we have already paid for, for example, in terms of infrastructure cost per passenger-mile.
One aspect which will eventually need reform is gas taxes will continue to drop with the spread of EVs, so a new form of usage-based billing will need to be developed -- hopefully one that doesn't involve a national tracking system, but I digress. It's fortunate that roads are so profitable that we haven't needed to raise the Federal fuel tax rate in over a decade, and have ample time to develop a solution.
3. The cost of 'free parking' is a relative rounding error in the $175 billion/yr we're talking about. Don't confuse the theoretical economic value of selling parking, or the potential value of re-purposing the space, with what it cost to build it.
There may be a subsidy here, even possibly a large one, but that's not based on the cost of building the spot, but more the perceived theoretical value in renting it. Again, we've gotten into externalties and strayed away from the basic cost analysis.
In reality, most parking costs are paid for by the parking consumer in one way or another. For example, at the mall, while you might not pay a fee to park, the store's rent includes the cost of building and maintaining the parking, and the prices of the goods at that store cover that rent. At your place of employment, you might not pay to park out back, but rest assured that the profit margin of the business includes the rent on the building, leaving less room in the P&L for salary. Again, whether the parking "benefit" is taxed as income to the employee is a different discussion as to whether roads pay for themselves.
4. You're getting into externalities here, without considering the positive ones. Police use the roads to prevent and respond to crime, which includes vehicular crime. Don't underestimate how much money is collected by governments through fines, fees, and forfeitures. In D.C. it works out to over $200 per person. Yes, it turns out, highways are overall very lucrative for the police. [3]
5. Thank you!
[1] - https://en.wikipedia.org/wiki/Interstate_Highway_System
[2] - https://edit.urban.org/sites/default/files/hr_4.png
[3] - https://www.forbes.com/sites/chuckdevore/2016/10/26/police-c...
When the company tried to raise the fare to 7 cents, they were disallowed by the courts because they couldn't prove the 5 cents fare was confiscatory.
I understand the city could raise the fare to benefit the company, but that isn't their obligation.
I would assume you're libertarian from the point you've made, and am curious whether you believe it was right for the contract to be enforced as it was agreed upon.
Passenger rail service in the US suffered a similar fate when the federal government called in its chips to move personnel and supplies all over the place during the command economy years of WWII. Yes, the rails received substantial subsidies in land grants, etc, to get started. Yes, there was agreement to serve the public interest in this way because of that. Yes, this was a big blow to passenger rail.
It isn’t odd because City Lab is generally in favor of leftist economic and urban policy. Exploring price controls might call into question their fundamental bias. Price controls are anti-market and typically so is City Lab.
Railways are one of these fields where markets regularily fail to deliver because you are in monopoly region and building another railway system to get some competition is unfeasable.
I don’t really see this as very ideological btw. I just have never seen a public transport market that developed much in favour of the general population without government intervention. So anecdotal evidence etc.
About affordable inter-city buslines, I feel that the new companies (uber like) that handle buses brought much more affordability than any law before.
In Germany at least, rail is viewed as a public good that should provide mobility to people in both big cities and more rural areas. Making it available outside the most heavily trafficked routes at a reasonable price is incompatible with privatization, again unless heavy subsidies are involved.
> With the subways now in municipal hands, a doubling of the fare was finally negotiated. Years of deferred maintenance by the cash-strapped private companies had become increasingly evident. But by then, fare hikes only exacerbated the problem of declining ridership.
So the government destroyed the system through price controls. Odd that City Lab doesn't explore that angle further.
Price regulation continues to be a problem with the subway. Fares on the MTA are half those of the London Underground. New York relies heavily on subsidies to cover operating costs, while the London Underground covers its operating costs through fares: https://www.theguardian.com/money/us-money-blog/2014/sep/29/.... That makes the MTA much more sensitive to changing political winds, as opposed to the Underground, which can pay its ongoing maintenance costs regardless of what the politicians are doing.