Thursday, June 3, 2010

Another Bailout's A-Comin'

As Americans in the year 2010, after all that has happened, we are understandably suspicious of what we call "bailouts." Well, it looks like another one is coming: this time for public transit agencies who are suffering from the lack of funding that is provided from our sorry excuse for a gas tax.

A group of senators have introduced a bill for emergency funding for transit agencies in the amount of $2 billion. There's no doubt that this money is needed, especially since ridership numbers are up all over the nation (and driving is down). But is there political will in an election year for yet another taxpayer-funded safety net for a private (or semi-private) industry? Honestly, I'm not sure. Although $2 billion is pocket change next to what was given out to the auto industry, Wall Street, and in the Recovery Act, it's the perception that counts; and the perception is that the taxpayers would be on the hook for funding yet another unsustainable industry.

When it comes to the automobile industry and the banks, I would agree with that notion completely, but the argument doesn't hold up with the transit problem for one big reason: It is only unsustainable because it is not on a level playing field. I'm sure those on the political right will score political points for coming out strongly against another bailout, but what they'll neglect to tell you is that we essentially bailout the automobile industry and its supporting infrastructure with almost $2 billion every day! The government subsidizes car travel with almost $600 billion per year, but it would be political suicide to be against that.

So, what is it going to be? Are we for some bailouts and not for others? Can politicians who call themselves conservative really say that the government should get its fingers out of all private business affairs? I would love to see someone come out and say that there will be no more subsidies for driving, corn, Wall Street, and Haliburton. No more subsidies for private business at all! Then maybe we could see what all of the hooplah about the "free market" is all about. But that will never happen, because it is these financially-loaded industries that buy our politicians, and they expect extreme loyalty in return.