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Don't Re-Regulate the Railroads

Citations

Real Clear Policy discusses policy on the railroad industry with Marc Scribner.

Marc Scribner of the Competitive Enterprise Institute neatly summarized the implications of forced access. According to Scribner, the STB “is facing intense pressure from some shipping interests to adopt regulations that would reduce railroads’ investment, flexibility, and quality of service across their networks.” He concludes: “such action would not only harm the railroads, but ultimately the shippers who use their networks and the consumers who benefit from efficient goods movements.”

The last time the government tried something like this was in the 1970s. The result was a railroad industry on the brink of bankruptcy, unable to adequately serve its customers and the needs of a first-world economy. If the proponents of re-regulation are unmoved by economic arguments, they should pause to recall this history lesson.

Read the full article at Real Clear Policy.