Skip to main content

View Diary: Sunday Train: The Ends of Amtrak (70 comments)

Comment Preferences

  •  No, the railroads obviously received the subsidies (2+ / 0-)
    Recommended by:
    Bisbonian, thanatokephaloides

    much earlier.

    But the financial benefits of those subsidies - the land, the timber, the return on the profits they earned selling these resources - continue to this day.

    Even if the assets were later separated from the liabilities.

    •  Actually, by now most of the ... (5+ / 0-)

      ... financial benefits have been bundled into prices paid to acquire the railroads, so the remaining benefits from land distributions are primarily in the form of inherited wealth of the heirs of those who sold out.

      This is especially the case of the eastern Class I's, Norfolk Southern and CSX, where even if there were some corridors that were originally owned by the railroad upon which the Class I was built, the large majority of their track was acquired as part of a process of corridor buyouts and railroad mergers.

      Its like the taxi medallion problem, where issue of taxi medallions lagging behind demand lead to an increase in the value of taxi medallions, but that is not a windfall gain to the person who buys into a taxi company after the increase in medallion value ... from their perspective, they paid a market price for the medallion, and it is included as part of their cost of operations.

      Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

      by BruceMcF on Mon Mar 03, 2014 at 10:26:39 AM PST

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site