The headline caught my attention: “Bullet
Train Back on U.S. Track.” The paragraph
which follows might have been predicted by anyone familiar with politics in
America’s most populous state: “The California High Speed Rail Authority has
reversed its plans to buy foreign parts for its trains, saying in a letter to
federal regulators that it was withdrawing a request for a waiver from the Buy
America Act.”
Why the Authority rescinded its intention,
disclosed a week earlier, that purchases of such items as rail cars, wheels,
axles and other parts would be from foreign sources, is obvious. Opposition from the AFL-CIO, which represents
the largest industrial unions in the nation, together with prominent lawmakers supported
by union contributions, and who have spent their careers trying to force public
agencies to buy goods made by American workers, cannot be ignored. The following statement by Congresswoman
Doris Matsui (D-Sacramento) makes this clear: “It is vitally important that
these parts are produced and manufactured in America, so that we continue to
maintain job growth and economic development.”
If we now put politics aside and zero in on
reality, we see that the Authority’s stated intention to assemble and operate a
high speed train with specific equipment is a matter of no consequence. The reason for this is, despite the need to demonstrate
economic accountability for the $64 billion project, there’s no sign the rail
line will ever be constructed or placed into operation. With the necessary funds nowhere in sight, any
declarations as to where these parts will be manufactured are meaningless.
A logical question follows: If the high speed
rail project will never be built, why is there so much consternation over
details concerning it? There’s an
equally logical reason for this.
Although no one will ever profit from the tens of billions of dollars
projected but not available, there’s still a good bit of money floating around
to be gleaned in some fashion. In
addition to the $9.95 billion approved by the November 4, 2008, bond issue,
there was $3.5 billion from a federal stimulus plan as well as $500 million per
year from state carbon cap-and-trade revenue.
From the standpoint of profitability, as long as favored parties
continue to receive payments for planning, design, studies, environmental
reports and the myriad of other boondoggles inherent when government funds
flow, a train need never be built.
If history is a guide—and it usually is—the
controversy will continue. As long as
there are funds in the till to be passed around to politically connected
contractors and construction unions, the efforts will continue. Only when all the money is gone will the
project end.
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If you enjoy this
weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly
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