Amtrak: Losing Money on the $10 Hamburger

[Valin]

Via Meadia:

Walter Russell Mead

8/3/12

 

By now, it is well known that Amtrak is bleeding money and not even coming close to breaking even on the majority of its routes—with one notable exception being the popular northeast corridor routes between Boston and DC. But running profitable train lines isn’t Amtrak’s only problem; it is equally bad at the much simpler task of selling food.

 

(Snip)

 

Only a government subsidized operation could sell hamburgers for $10 each and lose money. People who use Amtrak know that the food is overpriced and not very good. But, hey, it’s a captive dining audience, right? The dining car should be a way for Amtrak to recoup some of its losses from running its expensive trains. Instead, the food system is so badly managed that somehow it also loses a lot of money, apparently because of theft, bad management, high labor costs, and other problems.

 

Meanwhile, Amtrak wants another $150 billion to speed on faster trains on the Boston-Washington line. There’s actually a way to speed those trains without spending a dime: cutting out the unnecessary stops that rent-seeking politicians impose on Acela trains. Newark, Metro Park, Wilmington, Baltimore, BWI airport? For shame. And the same on the Boston-New York route.

 

(Snip)

[pollyannaish]

How the heck does this happen?! Wow.

 

Maybe Amtrack and the Post Office should merge.

[Valin]

How the heck does this happen?! Wow.

 

Maybe Amtrack and the Post Office should merge.

 

I've got a good friend who works for the Post Office and the problem is waaaay to much management. And it seems to me too many work rules.

they are operating like it is still the 1950s.

[pollyannaish]

How the heck does this happen?! Wow.

 

Maybe Amtrack and the Post Office should merge.

 

I've got a good friend who works for the Post Office and the problem is waaaay to much management. And it seems to me too many work rules.

they are operating like it is still the 1950s.

 

That is the problem with most government agencies, and we are very familiar with it because my husband works for Washington State. Very management heavy, too much emphasis on protocol which completely discourages creativity and productivity and what the state doesn't kill with that, the union kills with its contracts.

 

When you have one supervisor to two employees and you have to spend about 45% of your time documenting and learning protocol...it's expensive and inefficient.

[cudjo]

How the heck does this happen?! Wow.

 

Maybe Amtrack and the Post Office should merge.

 

I've got a good friend who works for the Post Office and the problem is waaaay to much management. And it seems to me too many work rules.

they are operating like it is still the 1950s.

 

Have a close friend that retired from military and then worked for Post Office and retired from Post Office, said there is an abundance of management and huge abundance of rules, surprising the mail gets out at all

[logicnreason]

As a contractor, I had been working for the state of WI until last week when I was released.

 

After two years, I noticed one striking and immense difference between the state and private industry.

 

The income to run a given department from the state comes from the taxpayer.

In private industry, the main source of funds to run the business comes from sales.

 

When you do not have to sweat sales, but simply "put out your hand" for the income, the need to "work harder", "spend less", and "operate more efficiently" dies. Folks there are completely concerned with keeping their jobs. I don't blame them for that given the current Depression, but there is absolutely no incentive to "produce".

 

Next year's budget will be the same as last year...so all that follows from this stays the same as well.

 

Here's an idea for the railroads....GET RID OF THE UNIONS!!

 

Maybe that will change things?

[Valin]

@logicnreason

 

While unions are an issues, I think the problems go deeper, than just union rules.

[logicnreason]

@logicnreason

 

While unions are an issues, I think the problems go deeper, than just union rules.

 

True enough....railroads in the US, in general, are beset by many problems, but since we can't cure them all at the same time, let's prioritize them.

 

#1 - GET RID OF THE UNIONS!!

#2 - everything else.

[Evad]

"Maybe Amtrack and the Post Office should merge."

That's exactly what I thought when I saw this article. Let's see....pick your mail up twice a week at your closest drop station.

Sounds better than the service I'm getting now.

[Valin]

@logicnreason

 

While unions are an issues, I think the problems go deeper, than just union rules.

 

True enough....railroads in the US, in general, are beset by many problems, but since we can't cure them all at the same time, let's prioritize them.

 

#1 - GET RID OF THE UNIONS!!

#2 - everything else.

 

When I say it's more than just unions this is what I am talking about...Blue Social Model. The good news is it is going away...the bad news is it may not go quietly into the good night. Remember how "Peaceful" the end of the medieval world and the birth of the Modern world was.....fasten your seat belts, it's going to be a bumpy ride.