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> for something useful such as building High Speed Rail in California

According to http://www.cahighspeedrail.ca.gov/images/chsr/20080121152955... , the system can't pay back the bonds that are currently on the ballot, bonds that cover less than half of the projected construction costs. Since such projections almost always overestimate revenues and underestimate construction costs, the real gap will be even larger.

Some of the tricks used to get the revenues up include high-rises in Fresno and other central CA cities over the train station. That makes a lot of sense in NYC where land is at a premium, but Fresno?

There's a reason why the ballot statement says that the operating costs "[operating] costs would be at least partially offset by revenue from fares paid by passengers" and doesn't mention interest and principle.

I can't find a breakdown for the operating costs on this version of the project. The last time I saw such a breakdown, the projected salaries and benefits of the folks running the trains exceeded the projected revenues....

If high-speed rail in CA made financial sense, why wouldn't a for-profit enterprise be interested in doing it?




If high-speed rail in CA made financial sense, why wouldn't a for-profit enterprise be interested in doing it?

Because there are externalities which a private company can't benefit from, but that people benefit from.


They benefit, but not enough to pay for it?

More importantly, what's the difference between "private company" and "people?"




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