At a time when nations like China and the U.K. are developing high-speed, sophisticated new railways, rail travel in the U.S. and the railway infrastructure continues to decline. America's passenger rails are managed by Amtrak, a company that was created in 1972. According to Semmens (1982) during the first decade of its existence, Amtrak cost the U.S. economy over $12 billion and more than 125,000 jobs. Believing private railroads were driving away riders deliberately, Amtrak was created through taxpayer funding with the goal of "revitalizing rail passenger operations" (Semmens, 1982, p. 1). A quarter-century later, Amtrak has failed greatly in its goal and represents serious consequences for passenger rail travel in the U.S. and the economy.
In the wake of declining ridership, reduced numbers of routes, numbers of trains serving existing routes, and continued economic losses; in 2003 the Bush Administration created a plan for Amtrak under the Passenger Rail Investment Reform Act. The plan breaks Amtrak into three entities. The Northeast Corridor would be owned by the Department of Transportation and "leased to a multistate compact" (Zukowski, 2005, p. 1). Amtrak, a second entity, would become an "operating company" that could compete for contracts with states or other authorities to run trains (Zukowski, 2005, p. 1). A third entity would "hold title to Amtrak's brand and tack-access rights" (Zukowski, 2005, p. 1).
Critics of the Bush plan for Amtrak maintain it makes about as much sense as dividing the Postal Service into different entities to sell stamps, deliver mail, and own the post offices. Transportation Secretary Norman Mineta officially criticized Amtrak's inefficiency, maintaining that "Amtrak fails to maintain vital pieces of the Northeast corridor...[and] insists on wasting taxpayer funds" (Zukowski, 2005, p. 1). Many believe that the federal government's stance on Amtrak is part o...