Articles by Ryan Avent
Ryan Avent is a freelance economics writer living in Washington, D.C. He blogs at ryanavent.com, and at The Economist's Free Exchange.
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A pro-rail coalition should be much larger
As a big supporter of rail and transit, the creation of the OneRail coalition is quite heartening. It is, in a nutshell, a group of rail advocacy organizations that have banded together to lobby for rail investment. The Hill reports:
Several trade and issue advocacy groups are part of OneRail, including the Natural Resources Defense Council, Amtrak, the American Short Line & Regional Railroad Association, the Association of American Railroads, and the Surface Transportation Policy Partnership.
If I have a complaint, it's this: A broader coalition is necessary. When highway funding is on the table, the heavies get into the game -- the oil companies, automobile companies, and chambers of commerce. Rail activities should also work to exploit the economic spillovers generated by rail investments. Transit-oriented development has proven lucrative for city governments as well as many commercial and residential developers. Producers of products from steel to electric and diesel engines to upholstery could benefit from new transit projects. Power companies, which helped develop the first generation of streetcar networks a century ago, might conceivably benefit from an increase in electricity demand or from the grid improvements that could accompany creation of improved national rail corridors.
The point is this -- rail investment is good environmental, energy, and economic policy, but it's also good business. And if OneRail can get business on board, then we can expect real legislative progress.
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Bills for highways, no change for transit
Think all news is bad news during this epic recession of ours? Think again -- over the past three months, real wages have increased 23 percent, an enormous gain. At a crucial period for many working families, paychecks are going a lot farther than they did back in the summer.
The explanation is simple: wages are flat, prices are down. The labor market operates on a bit of a lag, so while the recession affected oil demand and prices very quickly, layoffs and falling wages are emerging more slowly. Eventually, the weak economy will catch up to workers (those who still have jobs), and spending power will decline.
But this is important to remember given the trends of the past decade. When economies are growing, oil prices rise. This means that even while wages are growing, it's difficult for consumer spending power to keep up, unless we reduce the intensity of oil in our economy. How can we do this? Easy -- cut commuting times, reduce driving, reduce congestion, green intercity travel and green freight shipping (so that rising oil prices don't feed through to prices for other goods, including food).
This, of course, is the logic behind a push for greener infrastructure. Better transit and rail systems boost productivity -- by improving movement of goods and people -- which increases wages. They also reduce the petroleum intensity of the economy. In a boom period, you then have rising wages that aren't much eroded by rising energy costs. And that means a richer and greener society.
Barack Obama understands this; at least, that's what we've been led to believe by his speeches. Many Congressional leaders understand it too. And it is therefore very disappointing to see the contents of the new American Recovery and Reinvestment Act -- also known as the stimulus bill. As has been widely reported, roughly $30 billion of the proposed infrastructure spending will go to highways, while only $10 billion is allocated toward transit and rail.
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What Obama's picks signal for urban policy
Who are President Obama's key urban policy advisers? What do his pickes for Housing and Urban Development and Transportation say about an Obama urban policy?
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Funding transit to reshape the Sunbelt
The city of Phoenix celebrated the dawning of the new year by beginning normal, paying service on its shiny new light rail line. The current 20-mile segment runs from north of central Phoenix through the city, past Sky Harbor airport, and into Tempe and Mesa. If current plans are realized, an extension to the line will be completed by 2012, and a full(ish) network will begin to take shape over the following decade.
The light rail line is part of a wave of transit construction that's bringing transit systems to a new generation of booming cities. These emergent metropolises often went through crucial development phases at a time when the highway was king. Compared to older cities in the Northeast and Midwest, the amount of space devoted to dense, gridded development in such places is quite small indeed, and it has long been unclear whether transit could work in these cities, built for the car. A dreadful chicken and egg problem seems to exist. Few neighborhoods are currently dense enough to support transit, so opponents argue that systems won't draw riders. And because opponents can make this argument and systems often die on the drawing board, these cities never have the opportunity to catalyze denser, transit-oriented growth.