GM Bailout: Lessons from Amtrak?

In a post on the Daily Beast, Economist James Langenfeld draws a number of lessons between General Motors and Amtrak. You should read his post, but the point is that, like Amtrak, the US government has made a giant commitment to GM with no real signs of profitability anytime soon. He points out that, “It costs taxpayers about $1.40 for every $1 of revenue Amtrak takes in.” He cautions that the Obama administration, just like previous administrations with Amtrak, is in danger of making political decisions when economic decisions are warranted.

Here’s to hoping that the $50 billion does not create another Amtrak.