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m104 4 hours ago

Alright whippersnappers, let's chat about the history of railroads in the US.

In the early 20th century, US rail companies were beholding a very favorable situation: high demand to run loads of heavy freight all over the country, high demand to ferry passengers all over the country, and basically no serious competitors to either revenue source.

Now freight revenue was never going to be transformative to the industry, but it had the benefits of being reliable, un-fussy, and fairly easy to build a financial business around. Passengers, on the other hand, offered huge revenue potential, but had the downsides of being very fussy about things like safety and comfort and timeliness, along with wanting stations in convenient places and an ever-expanding rail network.

Students of US business management history should be unsurprised, then, that while evaluating the market that offered reliable revenue, versus the market that wanted large capital investments, the railroads overwhelmingly chose the freight market. In other words, US the railroad companies spoke and said we do not want passengers loudly and clearly.

The thinking was: passengers can do take the wagons and busses and cars and these newfangled airplane thingies, but freight is a guaranteed market for us! So the passengers slowly migrated to other form of transportation. But the kicker was, freight also wanted things like timeliness and access to an expanding transport network and, shockingly for the railroad execs, were willing to pay for it.

Add about 80 years, declining rail traffic, and tons of corporate mergers, and we have the sad state of US railways today: many residents have never seen a railway expansion or shiny new rail equipment, much less a real functioning passenger train. It's easy and comfortable to say that zoning or regulations or market forces allowed US rail to languish, but that would be ignoring the part where the industry did not want the customers in the first place.