Observations

I enjoy traveling by train in Europe. I was in Venice—for business, of course—and I needed to go to Rome. A 300-mile trip. If I were in the US, I would have chosen to travel by air without hesitation. Renting a car in Italy is expensive. Besides, gasoline prices are outrageous in Europe. The train was the best option.

In just 4 and a half hours I went from Venice to downtown Rome. The trip was fast at close to 100 miles an hour. They are now designing trains that would travel at 350 kilometers per hour (220 miles per hour). The train was very comfortable, clean, and the wide windows allowed me to see the picturesque Italian countryside. The train was flying, cushioned by the latest technologies. And the price was right—less than 100 dollars.

I know what you are thinking—the socialist regimes in Europe are subsidizing trains and most infrastructures. I agree with you. However, we in the US are not much different from the Europeans.

We spend a lot of money on building freeways, which are mostly inadequate. Studies have been made suggesting that increasing road capacity does not alleviate traffic jams. Yet, federal and state governments continue to build new ones and widen old ones.

Gasoline prices are the lowest in the world in order to encourage us to travel by car. In other words, the car industry is heavily subsidized in more ways than one. In the US, cars have been chosen as the main mode of transportation, while trains have been chosen in Europe.

Airline delays are a common fact. When I fly, I leave early, knowing I might miss my connections due to the long, frustrating delays.

Yet, when we talk about trains in the US we become “free market” fanatics. There is no doubt that the government must subsidize this mode of public transportation. However, think about the advantages. At 200 miles per hour one can travel 400 miles in just two hours, downtown to downtown. At this speed and comfort trains would become great competition to cars and airlines. There is no need to wait at the airport for connections to downtown, baggage claims, lost suitcases, etc.

Why don’t we encourage this mode of transportation? My guess is that there is too much pressure on keeping things the way they are. The airline and auto industry enjoy the many benefits of a monopoly with the protection of our government and in the name of “free market”.

(This "Observations" appeared in the 2/5/01 issue of The Peter Dag Portfolio)

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

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