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380kmh's profile
Haunted Forrest 🌲
Haunted Forrest 🌲
Haunted Forrest  🌲
@380kmh

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Haunted Forrest  🌲

@380kmh

#TrainTwitter - trains & train stations - passionate opinions on public transit & civic design - transit bureacrat, but all views here are my own

Pioneer Valley
patreon.com/380kmh
Joined March 2011

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    Haunted Forrest  🌲‏ @380kmh Feb 26

    The problem with relying on government subsidy--for anything, really, not just for transit--is probably best explained as a variety of induced demand

    12:05 PM - 26 Feb 2018
    • 7 Retweets
    • 15 Likes
    • Leben der Bestrafung Abe Voelker NΔvΔl Milk Tamara Winter Charls Richie Eugenics seven deadly evans HUNTED BULLY (pls no bully) 🚬 🎈🇨🇿 Roger Rabit
    1 reply 7 retweets 15 likes
      1. New conversation
      2. Haunted Forrest  🌲‏ @380kmh Feb 26

        government pays for a service so that end users don't have to pay the full cost -> end users start using the service more than they otherwise would -> existing subsidy proves insufficient -> "raise taxes!"

        2 replies 1 retweet 7 likes
        Show this thread
      3. Haunted Forrest  🌲‏ @380kmh Feb 26

        this pattern is part of the reason that roads are in poor condition (lmfao if you think the gas tax covers the cost of maintaining--let alone expanding--our road network)

        1 reply 1 retweet 8 likes
        Show this thread
      4. Haunted Forrest  🌲‏ @380kmh Feb 26

        there is a broader level in which induced demand is at play too--when gov actually overcomes people's reluctance to pay taxes and manages to raise them, new programs pop up to make use of new revenue

        1 reply 0 retweets 4 likes
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      5. Haunted Forrest  🌲‏ @380kmh Feb 26

        There will always be things which lose money but are deemed social necessities--we can't just stop paying for them, even if they never pay for themselves. But paying for things which lose money relies on OTHER things MAKING money...

        1 reply 0 retweets 3 likes
        Show this thread
      6. Haunted Forrest  🌲‏ @380kmh Feb 26

        ...which is why it's essential for any program with its own revenue source (like transit wrt fares) to maximize that revenue source, and use as little subsidy as possible--best case scenario is for it to turn a profit, so it can contribute to subsidies for OTHER things

        1 reply 0 retweets 3 likes
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      7. Haunted Forrest  🌲‏ @380kmh Feb 26

        Every dollar of transit operating cost that's paid for by transit fares is a dollar which doesn't need to come from the state, and can therefore go to other programs that are less capable of generating their own revenue...

        1 reply 0 retweets 3 likes
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      8. Haunted Forrest  🌲‏ @380kmh Feb 26

        ...moreover, this is the case even when transit is still state-operated. You don't need to be privatized to seek a profit!

        1 reply 0 retweets 2 likes
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      9. Haunted Forrest  🌲‏ @380kmh Feb 26

        "Privatization vs Nationalization" is a misleading dichotomy--the one that matters is "are we trying to be solvent or not?"

        0 replies 1 retweet 6 likes
        Show this thread
      10. End of conversation

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