{"id":52561,"date":"2014-06-11T05:32:44","date_gmt":"2014-06-11T09:32:44","guid":{"rendered":"http:\/\/countingpips.com\/?p=52561"},"modified":"2014-06-10T16:33:39","modified_gmt":"2014-06-10T20:33:39","slug":"beer-bears-and-a-canoe-your-guide-to-lower-travel-costs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/beer-bears-and-a-canoe-your-guide-to-lower-travel-costs\/","title":{"rendered":"Beer, Bears, and a Canoe: Your Guide to Lower Travel Costs"},"content":{"rendered":"<div id=\"inves-3126796352\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 11, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h4><span style=\"font-size: small;\">By Ann Pringle, <a href=\"http:\/\/www.millersmoney.com\/go\/v3tjw-2\/PIP\">millersmoney.com<\/a><br \/>\n<\/span><\/h4>\n<p>Leisure was last weekend\u2019s theme, I spent it in a canoe\u2014a cheap and energy-efficient way to see the Everglades, though not at all speedy. That was fine\u2014I just wanted to see alligators in their natural habitat, enjoy a frosty beverage with good company, and return to the city with my limbs intact. My nature-sighting report: zero panthers, one alligator, and one black bear.<iframe loading=\"lazy\" src=\"http:\/\/trk.caseyresearch.com\/f\/?content_id=888&amp;code=PIP&amp;editorial=beer-bears-and-a-canoe-your-guide-to-lower-travel-costs-1\" width=\"1\" height=\"1\" frameborder=\"0\"><\/iframe><\/p>\n<p>Now, had I\u00a0<em>needed\u00a0<\/em>to go from here to there in the swamp, an airboat or swamp buggy would have worked better, or so the locals said. However, when you\u2019re not rushing, old-time means of transportation like canoes and trains add to the adventure. There\u2019s no harm to indulging in that nostalgia\u2014though when Congress forces you to pay $45 billion so \u201cthe public\u201d can do the same, it\u2019s a problem.<\/p>\n<h3><strong>A $45 Billion Affair Sours<\/strong><\/h3>\n<p>The US has a 44-year-old mistress, and her name is Amtrak. Since its inception in 1970, the National Railroad Passenger Corporation (Amtrak) has received about\u00a0<strong>$45 billion in federal subsidies<\/strong>, according to the Congressional Budget Office.<\/p>\n<p>Amtrak loses money year in and year out despite these fat subsidies (or likely because of them). The company\u2019s operating loss for fiscal 2012 was the lowest since 1975: $361 million. Yes, that means Amtrak actually found a way\u00a0<strong>to lose more than $361 million each year for almost 40 years running<\/strong>.<\/p>\n<p>The Amtrak lobby is quick to point out that in total dollars, air and highway travel receive far more from the federal coffers. True enough. However, on average an American will ride just 20 miles on Amtrak each year.\u00a0<em>20 miles!<\/em><\/p>\n<p>Per passenger mile, Amtrak is far and wide the most heavily subsidized transportation system in the US. According to a 2012 Cato Institute study by senior fellow Randal O\u2019Toole, from 1995 to 2007 Amtrak\u2019s federal subsidies per passenger mile were 9 times greater than those to the airlines and 22 times greater than our highway system\u2019s.<\/p><div id=\"inves-1564312214\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>It\u2019s no surprise these subsidies haven\u2019t made train travel cheaper. Per passenger mile, inflation-adjusted airfares dropped 50% from 1960 to 2010. Meanwhile, Amtrak fares rose 70%. As O\u2019Toole mentions, it\u2019s pretty remarkable that during a period of rapid technological advancement and reduced costs for privately funded transportation, Amtrak has done<em>\u00a0such\u00a0<\/em>a shabby job of controlling costs.<\/p>\n<p>One runaway cost is so absurd, it will baffle anyone who\u2019s spent $6.25 on a ballpark hotdog and washed it down with a $5.75 Coke. From 2002 to 2012, Amtrak\u2019s food service operation lost the company, ahem, I mean\u00a0<strong>lost taxpayers $834 million<\/strong>.<\/p>\n<p>Ted Alves, who resigned as Amtrak\u2019s inspector general in February, testified to Congress last year that the\u00a0<strong>$72 million in food-service losses in 2012 alone<\/strong>\u00a0stemmed predominately from meals on long-distance routes. Free wine is part of the problem, as multiple long-distance routes include complimentary wine gatherings for sleeper-car passengers. Who knew you were buying so many people drinks?<\/p>\n<p>In short, Amtrak can\u2019t make a dime selling food and drinks to people who are literally stuck on a train with no other option. A privately owned and operated company could turn that problem around with a 10-minute lesson from any ballpark concession worker.<\/p>\n<h3><strong>#AmtrakResidency<\/strong><\/h3>\n<p>If you\u2019re not irked yet, get ready. Last March Amtrak launched #AmtrakResidency, a writer residency program \u201cdesigned to allow creative professionals who are passionate about train travel and writing to work on their craft in an inspiring environment.\u201d Up to 24 writers are being selected for 2- to 5-day \u201cresidencies,\u201d meaning free meals and long-distance travel, through March 2015.<\/p>\n<p>Answer two probing questions in 2,000 words or less and you, too, could be a contender:<\/p>\n<ul>\n<li>Why do you want a #AmtrakResidency?<\/li>\n<li>How would this residency benefit your writing?<\/li>\n<\/ul>\n<p>Too bad the rickety tracks make writing on Amtrak next to impossible.<\/p>\n<p>There\u2019s not much to redeem Amtrak. Its trains are less energy efficient than inter-city buses. It doesn\u2019t provide an invaluable service to the poor, who generally take that cheaper, more energy-efficient bus if and when they can\u2019t snatch up cheap airfare. And, though subsidy supporters call it an invaluable public service, I can\u2019t pinpoint what that service might be. Free wine for leisure travelers, perhaps?<\/p>\n<h3><strong>When Driving Miss Daisy Is Not an Option<\/strong><\/h3>\n<p>Seniors could benefit a great deal from well-run private alternatives. According to the Insurance Institute for Highway and Safety (IIHS), as of 2012, 79% of the US population aged 70 and older still held valid driver\u2019s licenses. That\u2019s up from 73% in 1997, and as the baby boomer population ages, the total number of 70-plus drivers on the road will increase as well.<\/p>\n<p>Unfortunately, they\u2019re not all road-safe. Although overall crash rates tend to decrease with age, the <strong>rate of fatal crashes takes an upward spike when drivers pass age 70<\/strong>. While many seniors self-regulate by driving only during daylight and sticking to familiar routes, those who shouldn\u2019t drive but do have limited alternatives.<\/p>\n<p>Short of hiring a personal driver, what other comfortable options do seniors have for inter-city travel? Not every trip warrants a flight, and thanks to the TSA, air travel is now a world-class headache anyway. Plus, in all but a few major cities, the bus carries a certain social stigma I won\u2019t dwell on here. Suffice it to say, middle-class seniors are unlikely to start riding the bus after 50-plus years behind the wheel.<\/p>\n<p>On the other hand, Amtrak\u2019s schedules are haphazard, its stations are bleak and difficult to move through, and its standards of service are spotty at best. It\u2019s too bad, though, because Amtrak should be courting middle-class and well-to-do seniors first and foremost. They have time to travel slowly and discretionary income to spend on comfortable accommodations and polite service.<\/p>\n<p>Furthermore, as long-distance driving becomes difficult or dangerous for the aging boomer population, private passenger trains could help fill the void.<\/p>\n<h3><strong>Lessons from the Sunshine State<\/strong><\/h3>\n<p>Among other errors in 2000\u2014recall the hanging chad\u2014Florida voters amended their state constitution to require construction of a statewide network of high-speed passenger trains. That\u2019s right, an actual constitutional amendment demanding trains.<\/p>\n<p>The plan unraveled in 2004 when voters repealed the amendment after learning how much it could cost them: $20-25 billion. However, the state\u2019s train dream didn\u2019t stop there. Construction on the Tampa-Orlando line, phase 1 of the state\u2019s plan, seemed imminent until Governor Rick Scott rejected $2.4 billion in federal stimulus to build the line. Scott cited concern that his state couldn\u2019t afford the project even with the federal funds.<\/p>\n<p>As the brouhaha over a state-funded Tampa-Orlando line continues, All Aboard Florida is planning passenger rail service from Orlando to Miami, with stops in West Palm Beach and Fort Lauderdale. The private company plans to operate 16 northbound and 16 southbound passenger trains beginning in 2016.<\/p>\n<p>It\u2019s still uncertain whether All Aboard Florida, which is being developed by Florida East Coast Industries, LLC\u2014a company with 122-year-old roots\u2014will be successful. About 17% of Florida\u2019s population is over age 65, and the state relies heavily on tourism, so it\u2019s an ideal place to test how much travelers will ride trains when they have to pay the entire fare out of pocket.<\/p>\n<p>What you just read was an excerpt from<em> <strong>Miller\u2019s Money Weekly<\/strong><\/em>, a free e-letter that provides retirees and people planning for retirement with guidance on saving, investing, and life. To get <em>Money Weekly<\/em> in your inbox every Thursday, <a href=\"http:\/\/www.millersmoney.com\/go\/v3uvu-2\/PIP\" target=\"_blank\">click here<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"xvMdV95u77zU\" style=\"clear: both;\">The article <a href=\"http:\/\/www.millersmoney.com\/go\/v3uyv-2\/PIP\" rel=\"permalink\">Beer, Bears, and a Canoe: Your Guide to Lower Travel Costs<\/a> was originally published at <a href=\"http:\/\/www.millersmoney.com\/go\/v3tjw-2\/PIP\">millersmoney.com<\/a>.<\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Ann Pringle, millersmoney.com Leisure was last weekend\u2019s theme, I spent it in a canoe\u2014a cheap and energy-efficient way to see the Everglades, though not at all speedy. That was fine\u2014I just wanted to see alligators in their natural habitat, enjoy a frosty beverage with good company, and return to the city with my limbs [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-52561","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=52561"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52561\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=52561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=52561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=52561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}