Within the identify of selling competitors the Biden Administration is about to run considered one of America’s nice success tales off the rails.
As this episode of What’s Forward explains, the U.S. rail freight trade is the world’s greatest, a stark change from 40 years in the past, when this important a part of our transportation infrastructure was in determined form. Deregulation got here in 1980, and the trade skilled a shocking turnaround.
What’s Biden’s beef? There are fewer huge carriers now than 40 years in the past. So what? Consolidations for efficiencies and entry to capital are regular. The important thing issue: Freight charges right this moment are 44% decrease than they have been in 1980. But the White Home is pushing a scheme to pressure bigger carriers to subsidize smaller ones.
All that can do is reverse the trade’s 40 years of progress.