# High-speed Rail



Stimulus bill anniversary thread

It’s been a year since President Barack Obama signed the American Recovery and Reinvestment Act (better known as the stimulus bill) into law. I didn’t like the early concessions Obama made to Republicans in a fruitless effort to win their support for the stimulus. I was even more upset with later compromises made to appease Senate conservadems and Republican moderates. They reduced spending in several areas that had real stimulative value (school construction funds, extra money for the Low Income Home Energy Assistance Program, aid to state governments) in order to include tax cuts that have much less stimulus “bang for the buck.” Senator Tom Harkin was right to question why 9 percent of the stimulus bill’s cost went toward fixing the alternative minimum tax, for instance.

Still, I supported passage of the stimulus bill. In late 2008 and early 2009 the U.S. economy was losing 600,000 to 700,000 jobs per month. Something had to be done. On balance, the stimulus did much more good than bad. Economists agree it has saved or created a lot of jobs:

Just look at the outside evaluations of the stimulus. Perhaps the best-known economic research firms are IHS Global Insight, Macroeconomic Advisers and Moody’s Economy.com. They all estimate that the bill has added 1.6 million to 1.8 million jobs so far and that its ultimate impact will be roughly 2.5 million jobs. The Congressional Budget Office, an independent agency, considers these estimates to be conservative.

Two and a half million jobs isn’t enough to compensate for the 8 million jobs lost since this recession began, but it’s a start.

Not only did the stimulus create jobs, it greatly increased spending on programs that will have collateral benefits. Incentives to make homes more energy efficient will reduce greenhouse gas emissions and save consumers money that they can spend elsewhere. Money for sewer improvements will provide lasting gains in water quality (inadequate sewers and septic systems are a huge problem in Iowa). The stimulus included $8 billion for high-speed rail. It wasn’t nearly enough, of course; we could have spent ten or twenty times that amount on improving our rail networks. But that $8 billion pot drew $102 billion in grant applications from 40 states and Washington, DC. The massive demand for high-speed rail stimulus funding increases the chance that Congress will allocate more funds for rail transportation in the future.

Unfortunately, most Americans don’t believe the stimulus bill created jobs. That’s largely because unemployment remains at a historically high level of 10 percent nationwide. Also, inflation-adjusted average weekly earnings have gone down during the past year. In addition, Republicans have stayed on message about the worthlessness of the stimulus bill, even though scores of them have hailed stimulus spending in their own states and districts.

Democrats on the House Labor and Education Committee released an ad that lists various popular stimulus bill provisions, such as increasing Pell Grants and teacher pay. The ad uses the tag line, “There’s an act for that,” naming the American Recovery and Reinvestment Act at the end. I don’t think it’s effective, because the ad doesn’t include the word “stimulus.” Few people will realize that the ARRA refers to the stimulus bill.

Bleeding Heartland readers, how do you view the stimulus one year later?

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Year in review: Iowa politics in 2009 (part 2)

Following up on my review of news from the first half of last year, I’ve posted links to Bleeding Heartland’s coverage of Iowa politics from July through December 2009 after the jump.

Hot topics on this blog during the second half of the year included the governor’s race, the special election in Iowa House district 90, candidates announcing plans to run for the state legislature next year, the growing number of Republicans ready to challenge Representative Leonard Boswell, state budget constraints, and a scandal involving the tax credit for film-making.

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Year in review: national politics in 2009 (part 1)

It took me a week longer than I anticipated, but I finally finished compiling links to Bleeding Heartland’s coverage from last year. This post and part 2, coming later today, include stories on national politics, mostly relating to Congress and Barack Obama’s administration. Diaries reviewing Iowa politics in 2009 will come soon.

One thing struck me while compiling this post: on all of the House bills I covered here during 2009, Democrats Leonard Boswell, Bruce Braley and Dave Loebsack voted the same way. That was a big change from 2007 and 2008, when Blue Dog Boswell voted with Republicans and against the majority of the Democratic caucus on many key bills.

No federal policy issue inspired more posts last year than health care reform. Rereading my earlier, guardedly hopeful pieces was depressing in light of the mess the health care reform bill has become. I was never optimistic about getting a strong public health insurance option through Congress, but I thought we had a chance to pass a very good bill. If I had anticipated the magnitude of the Democratic sellout on so many aspects of reform in addition to the public option, I wouldn’t have spent so many hours writing about this issue. I can’t say I wasn’t warned (and warned), though.

Links to stories from January through June 2009 are after the jump. Any thoughts about last year’s political events are welcome in this thread.

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A few links on passenger rail and transportation policy

Governor Chet Culver rode a train from Iowa City to Chicago Sunday, promoting passenger rail links en route to the Midwest High Speed Rail Summit, which starts Monday.  

After the jump I’ve posted some news relating to passenger rail in Iowa and nationwide, including a follow-up on Congressman Tom Latham’s attempt to transfer funds from high-speed rail to the highway fund.

UPDATE: From the governor’s office on July 27:

Governor Chet Culver and Governor Pat Quinn today signed a Memorandum of Understanding to coordinate efforts by Iowa and Illinois to establish passenger rail service from Chicago to Dubuque and from Chicago to the Quad Cities and Iowa City.

In addition, Governor Culver joined leaders from eight states who signed a Memorandum of Understanding in support of regional high-speed rail. That agreement includes, as a key goal, extending passenger service from Iowa City to Des Moines and on to Omaha. […]

Following the signing of the eight-state high-speed rail agreement, Iowa and Illinois officials signed a separate agreement that spells out action to be taken by the transportation departments in both states.

Click here and scroll down to find links to the rail agreements signed in Chicago on July 27.

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More promising signs for passenger rail in Iowa

This Sunday Governor Chet Culver is taking a train tour to promote passenger rail in eastern Iowa, similar to the trip he took through western Iowa last month. After the jump I’ve posted a news release from the governor’s office with details on his planned stops in Iowa City, West Liberty, Durant, Walcott and Moline, Illinois, where the Quad Cities’ passenger rail depot will be located. From there Culver will travel to Chicago for the Midwest High Speed Rail Summit on Monday.

The U.S. has ten high-speed rail corridors, and Business Week reported earlier this summer that the Midwestern and California corridors are well-positioned to receive some of the $8 billion in stimulus funds allocated for high-speed rail. A Federal Railroad Administration official spoke favorably of cooperation among eight midwestern governors, including Culver.

Competition for the stimulus rail funding will be stiff. The T4America blog reported last week that 40 states submitted a combined $102 billion in high-speed rail proposals for the $8 billion in stimulus funds. The overwhelming response from states prompted the House Appropriations Committee to allocate $4 billion toward high-speed rail in the coming year. The Obama administration had asked for $1 billion.

The Culver administration deserves praise for recognizing the benefits of passenger rail routes through Iowa to Chicago. The I-JOBS program included $3 million for expanding passenger rail service, and Iowa also has allocated a portion of our transportation funds from the stimulus bill to rail. These investments will help secure future federal funding for the projects. Rail links will benefit many Iowans who cannot drive (including a growing number of senior citizens) as well as those who prefer not to drive or fly.

Iowa Republicans may mock Culver’s commitment to passenger rail, but governors from both parties recognize the economic benefits that strong rail networks can bring. Those who argue that we cannot afford to invest in passenger rail during an economic recession should read this piece by BruceMcF, one of the best transportation bloggers around.

UPDATE: From the Iowa Global Warming Campaign:

Call Tom Latham NOW and tell him to support Passenger Rail in Iowa. He is trying to strip $3billion! 202-225-5476

LATE UPDATE: From Friday’s Des Moines Register:

Plans for a study needed to revive Des Moines-to-Chicago passenger train service have been put on a side track at least until next year, state officials say.

But Amtrak passenger train service to Dubuque and the Quad Cities appears likely in about two years.

Amtrak had been expected to complete a feasibility study sometime this year for twice-daily train service between Des Moines and Chicago. But the railroad has been deluged with requests for studies elsewhere in the wake of a national push to expand passenger train service, Amtrak spokesman Marc Magliari said in Chicago.

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As a result, Amtrak won’t finish the Des Moines study until money issues are resolved to ensure service between Chicago and Iowa City, Magliari said. An Amtrak report in 2008 suggested an Iowa City passenger train could start operating if about $32 million could be obtained to upgrade Iowa tracks and signals. […]

Iowa Department of Transportation Director Nancy Richardson said this week she hopes money issues for the Iowa City train can be resolved by early next year, which would permit work to completed on the Des Moines train study. The state agency is seeking federal economic-stimulus money for the Iowa City project.

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Obama announces plans for high-speed rail funding

LATE UPDATE: This piece by BruceMcF is a must-read: How to build a national high-speed rail system.

President Barack Obama and Transportation Secretary Ray LaHood released a

blueprint for a new national network of high-speed passenger rail lines Thursday, saying such an investment is necessary to reduce traffic congestion, cut dependence on foreign oil and improve the environment.

The president’s plan identifies 10 potential high-speed intercity corridors for federal funding, including California, the Pacific Northwest, the Midwest, the Southeast, the Gulf Coast, Pennsylvania, Florida, New York and New England.

It also highlights potential improvements in the heavily traveled Northeast Corridor running from Washington to Boston, Massachusetts.

The economic stimulus package included about $8 billion for high-speed rail projects, and Obama is seeking an additional $1 billion each year for high-speed rail in the next five federal budgets.

After the jump I’ve got more details on how this funding could benefit Iowa.

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No Silver Bullet, But Bullet Trains Are a Start

(See also the post from IowaGlobalWarming in the recent diary section. - promoted by desmoinesdem)

In remarkable parallel to the climate crisis, there is no single solution to reviving our economy – it will take a combination of innovative thinking and bold actions to face both challenges. The American Recovery and Investment Act (of which Jesse provides a great summary of energy-related features) illustrates that.

I want to take a moment to talk about one feature in the stimulus bill that occupied one sentence in his summary: high-speed passenger rail.

The American Recovery and Investment Act included a total of $9.3 billion for passenger rail: $8 billion for construction of high speed passenger rail and intercity passenger rail service and $1.3 billion for Amtrak (the National Railroad Passenger Corporation) rail investments. As I was talking about this today, the number of atrocious puns that came up was amazing:

  • “High speed passenger rail can get the economy back on track”
  • “Everyone’s getting on board with passenger rail”
  • “Trains can be a model for environomics*”
  • “The little stimulus package that could”

*environomics refers to developing a sustainable global economy

I could continue with the jokes, but you get the picture. However, I think it is worth noting that not only is there substantial support for high speed passenger rail in Congress (the original amount was $3 billion in the House and $2.25 billion in the Senate – apparently somebody in the conference committee likes us), but there is broad support among the public. Out here in the Midwest, we have been working to gain support and funding for a high speed passenger rail network, with its hub in Chicago. This system would provide high speed service to St. Louis, Cleveland, Detroit, Milwaukee, Madison, the Twin Cities and Omaha. For a little context, the trip from Omaha to Detroit is approximately a quarter of the width of the continental 48 states.

Map from www.midwesthsr.org

What is even more impressive to me is how rail can really be a model for how to actually engage diverse players in building a sustainable economy. Here in Iowa, we are building a coalition of labor, business and youth organizations (in addition to the traditional environmental groups) to work together on getting high speed passenger rail approved this year. And we’re not just talking liberal groups either. For example Jan Michaelson, a local conservative talk show host, had nothing but good things to say about rail when Andrew Snow from Iowa Global Warming joined his show this week. Talk about finally moving past partisanship – rail is one of the clearest vehicles to make this a reality (no apologies for the pun).

There are plenty of issues that can build a diverse base of support, but the thing is, high speed rail visibly makes lots of people’s lives easier. Upgrading building efficiency largely goes unnoticed except for electricity bills; people don’t see the wind energy powering their homes. But talk about saving yourself the hassle of driving several hours, not having to drive through traffic, and oh, did I mention that rail is about 3 times as efficient as driving and 6 times as efficient as flying. Oh, and hundreds to thousands of jobs will be created through construction and operation.

Rail has broad support, has a significant improvement in the ease of travel and will save countless vehicle miles traveled (well, you probably could count them, but it would keep you very busy). We can use rail as a way to build successful and diverse coalitions which we can then continue to work with to advance the less visible, less sexy aspects of sustainability. These relationships will be crucial to mobilizing society-wide action.

All aboard!

Originally posted on It’s Getting Hot In Here

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Open thread on playing it safe or being bold

Over Thanksgiving my family (all Barack Obama voters in the general) were talking about what we’d like to see him do as president. One of my biggest concerns about Obama has always been that he would compromise too much in the name of bipartisanship and not seize the opportunity to get groundbreaking legislation through Congress. I’ve also worried that he would water down good policies that threaten to significantly bring down his approval rating.

From my perspective, Bill Clinton’s presidency was not very successful for a lot of reasons. Some of them were his fault: he put the wrong people in charge of certain jobs, and he picked the wrong battles and listened too much to Wall Street advisers when it came to policy.

Some things were not Clinton’s fault: the Democrats who ran Congress in 1993 and 1994 were not always interested in working with him, and the leaders of the Republican-controlled Congress were more interested in destroying his presidency than anything else.

After getting burned in the 1994 elections, Clinton hired Dick Morris as a political adviser and moved to the right in order to get re-elected. He served a full two terms, but he didn’t leave a mark on this country. His greatest achievement, balancing the budget, was undone quickly by his successor. Many smaller successes on environmental and social policies were also reversed by George Bush’s administration.

Clinton approved a bunch of good presidential directives, especially on the environment, during his last 60 days in office. Doing them years earlier would not only have been good policy, it also would have prevented Ralph Nader from gaining so much traction in 2000.

Clinton left some very big problems unaddressed, like global warming and our reliance on foreign oil, because the obvious solutions to these problems would have been unpopular.

Compare Clinton’s legacy to that of Lyndon Johnson. Although Johnson made terrible mistakes in Vietnam (continuing and compounding mistakes made by John F. Kennedy), he enacted a domestic agenda that changed this country forever. Some of Johnson’s achievements were popular (Medicare), while others cost the Democrats politically in many states (the Civil Rights Act). But Johnson did not shy away from big change on civil rights because of the political cost.

I understand that no president will ever do everything I’d like to see done. I’d be satisfied if Obama enacted a groundbreaking, lasting improvement in one or two big areas, like health care or global warming. The right policies often have powerful enemies. I would rather see Obama get good laws passed to address a couple of big problems, even if doing so costs him the 2012 election.

My fear is that in Obama will end up like Bill Clinton–a two-term president who didn’t achieve anything that will continue to affect Americans’ lives four or five decades down the road.

If Obama only goes to the mat to accomplish one or two big things, what should they be? Keeping his promise to end the war in Iraq? Getting universal health care through Congress? Taking real steps to address climate change? Enacting a huge public-works program to deal with unemployment? Building high-speed rail connecting major American cities?

Would you be satisfied with progress in one or two areas, even if it meant that Obama was not re-elected in 2012?

After the jump I’ve posted a “meme” on being bold in your personal life, which is going around some of the “mommy blogs.” Some of the questions have more to do with luck or having money than with taking risks or being bold, though.

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Open thread on Obama's economic team

Apologies for not getting this thread posted yesterday, when President-elect Barack Obama unveiled his economic team.

On the plus side, there are no incompetent hacks in this group. I’ve heard particularly good things about Peter Orszag’s work at the Congressional Budget Office, and he will produce reliable numbers at the Office of Management and Budget.

People I respect speak quite highly of Melody Barnes, who will run Obama’s Domestic Policy Council.

Also, it’s encouraging that Obama is committed to a major stimulus bill that will focus on infrastructure investments. I’ll reserve further judgment until we see more specifics about Obama’s plans, because spending $350 billion on stuff worth doing is a lot better than spending $350 billion on boondoggles.

I also agree with Matthew Yglesias that if you’re going to throw tens of billions of dollars at the economy, high-speed rail in the Midwest would be an excellent place to start. (UPDATE: Senator John Kerry has introduced a major bill that would promote high-speed rail development across the country.)

On the down side, since I opposed the series of Wall Street bailouts we’ve been seeing this fall, I’m not thrilled to see Timothy Geithner as Treasury Secretary and Larry Summers as chief of the National Economic Council. During Bill Clinton’s presidency, I wanted economic policy to be more in the direction that Labor Secretary Robert Reich was proposing, but Clinton and now Obama are clearly favoring the approach of Clinton’s Treasury Secreatry, Robert Rubin. Almost everyone on Obama economic team has close ties to Rubin.

I think Bill Richardson will do fine at the Commerce Department, but I would have preferred to see him in a different cabinet position.

If you were one of those Obama supporters who claimed during the primaries that he would govern in a much more progressive way than Hillary Clinton, now would be a good time to rethink your views.

Meanwhile, George W. Bush’s team is taking care of one troubled financial firm after another. The latest bailout plan, for Citigroup, is a particularly bad deal for taxpayers, according to Paul Krugman (who reluctantly supported the $700 billion bailout package approved before the election).

What do you think about the team Obama is assembling to handle the economy?

UPDATE: The members of the New York Times editorial board are not wild about putting Geithner and Summers in charge:

As treasury secretary in 2000, Mr. Summers championed the law that deregulated derivatives, the financial instruments – a k a toxic assets – that have spread the financial losses from reckless lending around the globe. He refused to heed the critics who warned of dangers to come.

That law, still on the books, reinforced the false belief that markets would self-regulate. And it gave the Bush administration cover to ignore the ever-spiraling risks posed by derivatives and inadequate supervision.

Mr. Summers now will advise a president who has promised to impose rational and essential regulations on chaotic financial markets. What has he learned?

At the New York Fed, Mr. Geithner has been one of the ringmasters of this year’s serial bailouts. His involvement includes the as-yet-unexplained flip-flop in September when a read-my-lips, no-new-bailouts policy allowed Lehman Brothers to go under – only to be followed less than two days later by the even costlier bailout of the American International Group and last weekend by the bailout of Citigroup.

It is still unclear what Mr. Geithner and other policy makers knew or did not know – or what they thought they knew but didn’t – in arriving at those decisions, including who exactly is on the receiving end of the billions of dollars of taxpayer money now flooding the system.

Confidence in the system will not be restored as long as top officials fail or refuse to fully explain their actions.

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