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| ▲ | jcranmer 10 hours ago | parent | next [-] |
| > The reason there's not more public transit is because the economics are terrible. The reason we don't have roads is because the economics are terrible. The government gets $0 per trip [1], but it costs billions of dollars a year in operating expenses. Wait, that's not how it works. [1] Federal gas taxes don't count, because those go to the Highway Trust Fund which funds road construction, which is not an operating expense. State gas taxes may vary. Although toll roads also properly charge people user fees, although for some reason, lots of drivers complain about how expensive tolls are... |
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| ▲ | tristanj 7 hours ago | parent | next [-] | | But you can't ignore the financials. SF Muni's $3.62 cost per passenger mile is atrocious. At that price point, it's cheaper to charter a helicopter. I'm not kidding. You could literally charter a 20-seat Airbus H175 helicopter to fly people around for $2.50 per passenger mile. And you'd get there faster. If public transit is less cost-effective than taking a helicopter, then something is clearly broken. | | |
| ▲ | Schiendelman 2 hours ago | parent | next [-] | | Of course, this is what happens when there's no profit motive. If we weren't making the marginal cost of using a road zero, and they had to compete with each other, and the people running transit wanted to make money rather than satisfy the requirements of a law, transit would be cheaper. That's how it is in all the places in the world where transit is really good. | | | |
| ▲ | hcknwscommenter 20 minutes ago | parent | prev | next [-] | | Dude. Public transit can carry hundreds of thousands (millions even). How many helicopters you planning on having? How many landing pads? Where are they going to go? You going to spin up a municipal ATC? This is silly. | |
| ▲ | 5 hours ago | parent | prev | next [-] | | [deleted] | |
| ▲ | mitxela 5 hours ago | parent | prev | next [-] | | Is it just because of an artificial low denominator? | | |
| ▲ | wallst07 4 hours ago | parent [-] | | It's circular: * Few take it because it doesn't meet their need [low denominator] * Let's spend money to make it meet people's need [numerator goes up] ... ? |
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| ▲ | archagon 6 hours ago | parent | prev | next [-] | | Good luck scaling that “solution!” | |
| ▲ | lazyasciiart 5 hours ago | parent | prev [-] | | Perhaps what’s broken is your financial analysis. | | |
| ▲ | trollbridge 3 hours ago | parent [-] | | Please show his error. | | |
| ▲ | hcknwscommenter 19 minutes ago | parent [-] | | The error is completely ignoring the negative economic externalities of NOT having public transportation and the positive economic and environmental externalities of having public transportation. |
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| ▲ | xnx 4 hours ago | parent | prev [-] | | Roads are fully paid for by road users (i.e. everyone). | | |
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| ▲ | anewhnaccount2 11 hours ago | parent | prev | next [-] |
| Infrastructure for cars is massively subsidised too. Since tansport is infrastructure it it interacts with everything else (eg less cars in the city => less spending on car infra) and has a lot of positive externalities. The investment pays back in positive outcomes which can also be quantified in terms of money of you like. It's like you've got a balance sheet but you're filtering it to only look at two items. |
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| ▲ | Zacharias030 8 hours ago | parent [-] | | Additionally, the other poster failed to mention that the unit economics for the marginal rider are much more favorable. |
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| ▲ | skew-aberration 11 hours ago | parent | prev | next [-] |
| Yes, but public transit does create value - the question is who captures it. BART likely created huge profits for people who owned land in the areas it services - house prices and rents would have increased substantially. Public investment, private profits. Subsidies in the form of low-cost fares like this are just further welfare for the landowners. Interestingly, about a third of BART's cost was acquiring land - if/when that same land is cleared and sold on market, the project would have operated at an enormous profit. Certainly, BART's current assets would far exceed 'total fares collected'. |
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| ▲ | wallst07 4 hours ago | parent | next [-] | | >BART likely created huge profits for people who owned land in the areas it services Unless you try to build housing. https://reason.com/2018/02/21/san-francisco-man-has-spent-4-... | |
| ▲ | xnx 4 hours ago | parent | prev [-] | | > public transit does create value - the question is who captures it. Overpaid transit employees, engineering firms, and construction companies. | | |
| ▲ | Schiendelman 2 hours ago | parent [-] | | That's a minuscule amount of the value it creates. And that's a problem, and a problem we can only fix by privatizing it. But most of the value it creates is for the landowners around it. And that's why successful transit companies are also real estate developers. Even in our own history, that's how private transit worked before we killed it. |
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| ▲ | hcknwscommenter 21 minutes ago | parent | prev | next [-] |
| You are completely ignoring the MASSIVE benefit the transit provides to the city. It allows densification. It allows people to get places without driving (and thus without parking). It frees up roads/traffic for those who do decide to drive. |
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| ▲ | milesskorpen 11 hours ago | parent | prev | next [-] |
| Cars are also subsidized (roads) - isn't that what taxes are for? If we could go back to pre-pandemic ridership levels, the subsidy rate would be inverted (fares covered 70% versus 30% now). Public Transit struggles with low utilization. It'll take 10+ years to get back to that ridership level though. |
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| ▲ | tristanj 10 hours ago | parent [-] | | Sure, but cars aren't subsidized at $18 dollars per trip. The cost to the government of providing and maintaining roads is on the order of several cents per vehicle mile traveled. For BART, that number is: $1.07B operating expense / 892.5M million passenger miles traveled = $1.20 per mile. Then subtract out the fare per mile and the government is paying $0.84/mile for people to ride BART. | | |
| ▲ | panarky 10 hours ago | parent | next [-] | | > the government is paying $0.84/mile for people to ride BART If BART disappeared tomorrow, how much would the government have to pay to build all the additional roads and parking to support that incremental traffic? And how much for healthcare for all the incremental pollution and collisions? > several cents per vehicle mile It's close to a dollar per mile when you include all the externalized costs. Incremental property damage, injuries and fatalities, incremental chronic illness from pollution, parking land subsidy, fair market value of incremental land use and rights of way, lost tax revenue from that incremental land use, etc. | | |
| ▲ | Zacharias030 8 hours ago | parent [-] | | Caltrain rides allow riders to be productive during the ride and generate income taxes in a way that cars do not. | | |
| ▲ | Schiendelman 2 hours ago | parent [-] | | In general, this is why semi-private or private transport works so much better. If the end user is getting a bunch more value out of working on the train, they will pay more for the train than the road (if they have to pay the full price of the road vs train each time they use each). | | |
| ▲ | robotresearcher an hour ago | parent [-] | | “Works so much better” Can you back up that claim? Which world cities with admirable transport systems have this model? |
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| ▲ | hcknwscommenter 16 minutes ago | parent | prev | next [-] | | Citations please? Seriously, you are making up numbers for the cost of cars and the govt subsidies provided. Did you account for the DMV? Did you account for traffic police? Did you account for the installation and maintenance of traffic light systems? Of course you didn't. | |
| ▲ | DiogenesKynikos 9 hours ago | parent | prev | next [-] | | If you look at how American cities are laid out, the cost on society of car infrastructure is massive. Roads and parking space use up a very significant percentage of the real estate in an American city. Public transit is far more efficient with space, so it saves society as a whole a lot of money. | | |
| ▲ | intrasight 6 hours ago | parent | next [-] | | Private autonomous transportation will allow that public infrastructure to be tenfold more productive. Public transportation will never have the incentive to minimize cost and headcount. Where we do have public transportation, it should always face competition from private offerings - including on the tracks, as they do in Italy, for example. | | |
| ▲ | throwaway473825 5 hours ago | parent | next [-] | | That's not true. For example, France is rapidly automating its metros. The US is quite unique in viewing public transport as a jobs program rather than a public service. | |
| ▲ | mitxela 4 hours ago | parent | prev [-] | | Of course it has the incentive. Even in this thread people are getting mad about it costing too much. | | |
| ▲ | Schiendelman 2 hours ago | parent [-] | | When someone says incentive in this context, they usually mean the individual incentives of each of the workers to make money for themselves, get promoted to get a share of profit, not the overall fuzzy public pressure. |
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| ▲ | lotsofpulp 4 hours ago | parent | prev [-] | | And low density suburbs in America are never going to get torn up and re-platted so autonomous vehicles is the only way to improve safety. | | |
| ▲ | Schiendelman 2 hours ago | parent [-] | | On the contrary, our biggest cities started as little groups of houses. Letting places increase their density is a natural solution to a lot of this. The core problem is that we need to take away the power of local government to limit development. |
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| ▲ | bluebarbet 6 hours ago | parent | prev | next [-] | | As others are explaining, these calculations are essentially spurious due to all the off-the-books externalities. In a city the only question that surely matters is: Can the mode of transport be scaled? For private car transit, the answer is no. No city can function if everyone gets around by car. Even Houston has light rail and a bus network. If you can drive and your city somehow remains livable, that is because other people are taking transit. | |
| ▲ | hiddencost 10 hours ago | parent | prev [-] | | You're missing a lot of externalities here. Also, the cost to a driver of the car is around $0.70 not including cost to the government and cost of externalities. |
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| ▲ | tyre 10 hours ago | parent | prev | next [-] |
| iirc the NYC subway is only about 40% subsidized by fares. I’m happy to pay more in taxis for it to exist and subsidize lower income residents. There are huge economic benefits to the city that you’re not factoring in. Not everything has to be directly money making. If anything, the Bay Area needs significantly more public transit. BART in particular is mostly useful between cities, in my experience. You can’t go from the mission to cow hollow or dog patch to north beach, let alone anywhere to the ocean. Also, subways don’t have much (if any) marginal cost per passenger. The issue isn’t cost but ridership. Ridership will increase with utility, which requires political will, which does not exist. SF could be so much more. |
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| ▲ | trollbridge 3 hours ago | parent [-] | | If you think subways have no marginal cost per passenger, you should consider Zeno’s paradox more |
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| ▲ | codedokode 10 hours ago | parent | prev | next [-] |
| For another comparison, Moscow Central Diameters system (electric trains traveling from Moscow to nearby small towns) has 4 lines, 137 stations, 188 miles total length. It uses united fare payment system with buses and subway and transfer from a train to the subway is free of charge. Fare is about $1-$3 depending on the route. To be fair, it goes through Moscow at a slow speed and takes an eternity to get anywhere, and its range is limited [1]. Moscow subway [2] has 17 lines and 309 stations. In newer cars, 2 USB-A sockets are available near every seat, ready for robots. [1] https://en.wikipedia.org/wiki/Moscow_Central_Diameters [2] https://en.wikipedia.org/wiki/Moscow_Metro |
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| ▲ | dcrazy 11 hours ago | parent | prev | next [-] |
| But the Bay Area’s highway networks are at saturation during peak hours. 101 and 280 are at least as bad as before the pandemic. We have under-utilized transit corridors that could alleviate much of this strain if they weren’t so damn far away from where the people sitting in traffic want to go. |
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| ▲ | lxgr 7 hours ago | parent | prev | next [-] |
| Are you arguing that specific past bad economics are somehow indicative of a theoretical hard ceiling for any potential future performance? If so, how are other places in the world then regularly above that ceiling? |
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| ▲ | robotresearcher 39 minutes ago | parent [-] | | Ancient cities in Europe and Asia, and some of the US east coast cities were already very dense and well served by transit before the car was invented. The US Midwest and West were built out more recently and at lower density, which is enabled by private car ownership. |
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| ▲ | dml2135 3 hours ago | parent | prev | next [-] |
| And how much do people spend on cars, gas, maintenance, insurance, parking, etc.? |
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| ▲ | Fire-Dragon-DoL 10 hours ago | parent | prev | next [-] |
| Yeah but the cost per passenger is in the hundreds due to private car ownership |
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| ▲ | anon7000 9 hours ago | parent | prev | next [-] |
| I mean my own PERSONAL per mile cost for a car is around $1/mi/yr, and it has a low interest rate loan and well below average monthly payment. Accounting for car insurance, gas, and maintenance. And that’s not even counting for however much I’m subsidized on the highway and road systems I don’t pay anything to use. Public transit is definitely expensive, but the alternative is also very costly and also regressive. The goal with public transit is to provide a low-cost, high-density way to move people around the city. It’s a public service, it shouldn’t be making profit. Car ownership is more expensive in total and very space-inefficient. Cities don’t have room for space inefficiency. |
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| ▲ | tyzoid 11 hours ago | parent | prev | next [-] |
| Are you factoring in fixed costs to that estimate? That may be partially misleading if so. |
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| ▲ | tristanj 11 hours ago | parent | next [-] | | Obviously yes, you have to since the vast majority of expenses (>70%) are fixed costs. If you only exclude them and only look at marginal costs, they're profitable. But you cannot run a transit system on marginal costs, so using that comparison is also misleading. | | |
| ▲ | lxgr 7 hours ago | parent | next [-] | | Thought experiment: What would happen with total profitability, given positive marginal unit economics, if readership were to greatly increase? | | |
| ▲ | trollbridge 3 hours ago | parent [-] | | I’d imagine it would get really congested unless massive fixed costs were expended to make the system higher capacity. |
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| ▲ | jltsiren 10 hours ago | parent | prev [-] | | The usual rule of thumb is that fixed costs of public transit are covered by increased property values. It could mean a private transit company developing the areas around stations (as it often works in Japan), or it could mean the government getting more money from property taxes. Or it could even mean more money from income taxes, if the transit project stimulates economic activity. If a transit project doesn't increase property values enough to justify the investment, or if the entity funding the project cannot extract that value, the project rarely makes sense. | | |
| ▲ | trollbridge 3 hours ago | parent [-] | | Now you’ve created a property tax regime where nobody is going to want to own residential property near a transit station. |
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| ▲ | what 11 hours ago | parent | prev [-] | | How is it misleading? Taking the total cost to operate and dividing by the number of rides tells you what it costs per ride. I’d be more interested to know how so many people are paying less than $1 for a mini trip when the fare is closer to $3. | | |
| ▲ | dcrazy 11 hours ago | parent | next [-] | | Because it makes in implicit comparison with a hypothetical transportation mode with zero dollars of government subsidy. The automobile analogue to fares is gas taxes, so the first crack at a true comparison is to compare the Caltrans budget to gas tax receipts. | |
| ▲ | toufka 11 hours ago | parent | prev | next [-] | | Subsidies for public goods create economic multiples. It’s not plainly obvious that it’s bad to subsidize a trip by $10. And compared to what? How much is interstate infrastructure subsidized per trip? Or airline infrastructure? | | |
| ▲ | skew-aberration 10 hours ago | parent [-] | | I think most economists would contend that the value of the subsidies is largely captured by landowners. Public investment, private profits. | | |
| ▲ | adgjlsfhk1 9 hours ago | parent [-] | | and that's why property tax exists (land value tax would be better, but anyway). |
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| ▲ | hiddencost 10 hours ago | parent | prev [-] | | They're discarding the cost per mile to a driver. If you add that back (and especially if you add externalities back) driving is more expensive. |
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| ▲ | dadoum 8 hours ago | parent | prev | next [-] |
| Looking at the financials outside the US might also be relevant. There are no reasons for the US to be special here in my opinion. |
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| ▲ | throwaway473825 6 hours ago | parent [-] | | There is a reason why the US is special - Buy America Act. New Flyer and Gillig would collapse almost immediately if they were exposed to global competition. |
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| ▲ | Barbing 10 hours ago | parent | prev | next [-] |
| Blew my mind when I learned that about Caltrain. I thought tickets felt a little expensive, then I learned what it really should cost. You know subsidy per train passenger mile? |
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| ▲ | tristanj 10 hours ago | parent [-] | | Yeah I was shocked as well when I learned about the financials. I'll the subsidy per passenger mile to the table as well. I remember talking to a VC a few years back, and he vehemently explained why he will never ever fund companies related to public transit, for this reason. Public transit was one of the two sectors he would not invest in (the other being materials science). | | |
| ▲ | Barbing 9 hours ago | parent [-] | | Incredible!!! Wow, is this apparent extraordinary cost discrepancy anybody’s fault, or is that just how it has to be? | | |
| ▲ | tristanj 8 hours ago | parent [-] | | In my opinion, the primary driver is the astronomical cost of housing in the SF bay area (which is 3x the national average), which drives up the cost of all labor. Public transit is infrastructure heavy, very labor intensive, and the high cost of labor makes it very expensive. In the bay, low-skilled / manual laborers spend >50% of their income on housing. Many can't afford to live here, so they demand higher wages or leave, which drives up the price of labor even further. If sufficient housing were built and the Bay Area had the same housing prices as the rest of the US, then 1) the supply of labor would go up 2) wages could fall by 30-40% without a quality of life decrease. Businesses could reduce their labor costs by 20%, which would improve the QoL of everyone in the area, including manual laborers. When local businesses cut costs, then everything costs less (food, housing, transport), and QoL goes up. Then run this process iteratively and you will see massive reductions in prices everywhere, the cost of everything will go down by 30%+ percent. For the case of BART, they spend ~$800 million / year on labor, so reducing cost here has the highest RoI. They would save hundreds of millions per year. | | |
| ▲ | throwaway473825 5 hours ago | parent [-] | | That's a feature, not a bug. Public transport is viewed as a jobs program in the US. Buy America Act makes buses roughly three times more expensive, and then they use decades-old technology due to a lack of competition. The MTA in NYC has two-person subway crews, which is almost unprecedented in this day and age. BART could be driverless if unions wouldn't revolt. There's an irony that American unions are strong enough to prevent automatization, but weak enough to fear it (unlike say Denmark or France). |
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| ▲ | lapkaaaa 8 hours ago | parent | prev [-] |
| it's almost like public transport is a service and not a for profit business |
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| ▲ | xnx 4 hours ago | parent | next [-] | | That's fine. It's just a matter of how unprofitable it should be. BART taxpayers are getting an absolutely terrible value for their money. | |
| ▲ | trollbridge 3 hours ago | parent | prev [-] | | How unprofitable should it be? |
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