> The reason you get the state involved is because good infrastructure like high speed rail is a force multiplier on the effectiveness of everyone around it, even when it isn't turning a profit in and of itself
This is absolutely true. I live a distance from Toronto that can be covered in about 40 minutes of driving, but the traffic jams in the Greater Toronto Area (GTA) are absolutely insane, and as a result it is not uncommon for this 40 minute trip to take 1.5 to 2 hours, with a random but not infrequent chance that it will take 3 hours instead, based on an accident.
A study in 2013 (http://www.canadianbusiness.com/economy/the-end-of-gridlock/) found that gridlock was costing Toronto $11 billion CAD every year. That's just Toronto, and says nothing about surrounding communities. The cost to Ontario as a whole has to be in the tens of billions annually. There's no way that the agencies that build and run public transport in Ontario will earn billions of dollars in annual profits from it, but that's not the point - the point is to create public infrastructure that generates a healthy economy which does return money to the public purse in the long run.
This is absolutely true. I live a distance from Toronto that can be covered in about 40 minutes of driving, but the traffic jams in the Greater Toronto Area (GTA) are absolutely insane, and as a result it is not uncommon for this 40 minute trip to take 1.5 to 2 hours, with a random but not infrequent chance that it will take 3 hours instead, based on an accident.
A study in 2013 (http://www.canadianbusiness.com/economy/the-end-of-gridlock/) found that gridlock was costing Toronto $11 billion CAD every year. That's just Toronto, and says nothing about surrounding communities. The cost to Ontario as a whole has to be in the tens of billions annually. There's no way that the agencies that build and run public transport in Ontario will earn billions of dollars in annual profits from it, but that's not the point - the point is to create public infrastructure that generates a healthy economy which does return money to the public purse in the long run.