Meanwhile, the 47 Muni bus that connects the Van Ness transit corridor to Caltrain has been “suspended” since 2020, and the extension of Caltrain to the transit center is still unfunded.
I appreciate solutions that meet us where we are, but it’s depressing that we don’t seem to actually have the will to make a sustainable, integrated mass transit plan.
Subsidies for public goods create economic multiples. It’s not plainly obvious that it’s bad to subsidize a trip by $10. And compared to what? How much is interstate infrastructure subsidized per trip? Or airline infrastructure?
the person riding transit benefits themselves, and their landlord, and the people driving.
they also benefit their workplace, by both working there, and not having to store a car there, and then anywhere they spend money at their destination, or the transit stops they used.
the value of the transit line is all over the place
Largely it is, according to both classical economic theory and modern empirical studies.
Often called 'land value uplift' these days, or 'unearned increment'/'land monopoly rents' in days gone by.
Theoretically in a free market, the landlords will be able to increase rent in proportion to the 'market value' of the convenience to the tenants (short commutes, etc). Likewise, homeowners will sell for a higher price - capturing the value that would be conferred to new owners. A city with good transport demands higher rents in outer suburbs serviced by that transport.
Your workplace likely also rents their premises too. They now have a convenient train station 5 minutes' walk away - and guess what, their landlord ups the rents too. Once again, in proportion to the 'market value' of the convenience to the workplace. The nearby cafes will now increase their coffee price to cover their increased rent.
Although this is the position of most economists, politicians are often reluctant to draw attention to it. Instead, where I live, they use models like commute time saved per person' x 'number of people' x 'average hourly wage'.
You can verify all of this yourself by viewing residential and commercial rental listings in your city.
Many economists have proposed solutions to this problem, often in the form of land value taxes.
dcrazy · · focus · HN ↗
I appreciate solutions that meet us where we are, but it’s depressing that we don’t seem to actually have the will to make a sustainable, integrated mass transit plan.
tristanj · · focus · HN ↗
For comparison, federal spending for the interstate highway system is about 2-3 cents per passenger mile.
tyzoid · · focus · HN ↗
what · · focus · HN ↗
I’d be more interested to know how so many people are paying less than $1 for a mini trip when the fare is closer to $3.
toufka · · focus · HN ↗
skew-aberration · · focus · HN ↗
8note · · focus · HN ↗
the person riding transit benefits themselves, and their landlord, and the people driving.
they also benefit their workplace, by both working there, and not having to store a car there, and then anywhere they spend money at their destination, or the transit stops they used.
the value of the transit line is all over the place
skew-aberration · · focus · HN ↗
Often called 'land value uplift' these days, or 'unearned increment'/'land monopoly rents' in days gone by.
Theoretically in a free market, the landlords will be able to increase rent in proportion to the 'market value' of the convenience to the tenants (short commutes, etc). Likewise, homeowners will sell for a higher price - capturing the value that would be conferred to new owners. A city with good transport demands higher rents in outer suburbs serviced by that transport.
Your workplace likely also rents their premises too. They now have a convenient train station 5 minutes' walk away - and guess what, their landlord ups the rents too. Once again, in proportion to the 'market value' of the convenience to the workplace. The nearby cafes will now increase their coffee price to cover their increased rent.
Although this is the position of most economists, politicians are often reluctant to draw attention to it. Instead, where I live, they use models like commute time saved per person' x 'number of people' x 'average hourly wage'.
You can verify all of this yourself by viewing residential and commercial rental listings in your city.
Many economists have proposed solutions to this problem, often in the form of land value taxes.