Marketwatch.com Chief Economist Irwin Kellner mentioned one idea that's Europe-esque -- a policy that would not stand a chance during robust economic times -- but one that may gain support, due to the recession. Kellner's 'radical' idea? Make mass transit free. That's correct: free.Here's his argument: across the U.S., cash-strapped mass transit systems are doing what they should not be doing: raising fares at a time when riders are already being pinched by rising prices, property taxes, and transportation expenses.
The transit systems feel that have no other choice but to raise fares (and cut services), but Kellner says this is having an effect the U.S. economy least needs right now: it's further reducing consumers' disposable income.
Kellner's solution: Eliminate the fares and use federal funds to make up the difference. The idea is not as outlandish as it appears: most transit fares account for 30-45% of ridership cost, with the rest made up by state and federal funds.
The benefits of Kellner's free ride?
You guessed it: increased disposable income for consumers -- something adults could no doubt use, and something that's sorely needed by the U.S. economy right now.
The plan would also have the added benefit of encouraging mass transit use (reducing traffic congestion) while lowering oil/gasoline consumption -- and the federal government would generate that increased efficiency without paying to laying one new mile of subway or light rail track and/or buying one new bus.
Source: Should mass transit be made free, to stimulate the US economy? - BloggingStocks
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