President Obama’s plan for a high-speed rail project could prove to be quite costly and a very risky move if profits do not match what he is hoping.
Obama will be funding $13 billion into a determined high-speed rail project.
Some have felt that the idea will not be able to generate any type of profit. On the flip side, some find that the idea will not only generate money, but will also be a means to generate an increase in employment.
Sam Staley, director of urban growth and land-use policy at the Reason Foundation has felt the proposed project could be chancy as there are particular variables that are uncertain. He felt as though the notion that people will utilize the rail is being overestimated and the overall cost of the project is being underestimated.
Others, however, like Mehdi Morshed feel as though the project is worth every cent being put into it. As the execute director of the California High Speed Rail Authority, he has estimated costs of $34 billion for connections being made in California. As the most heavily populated state, a high-speed rail system was proposed that would link San Diego to San Francisco and Sacramento.
In April, Obama elaborated more on his drive to develop a high-speed passenger rail line located in at least 10 regions.
As a means of combating congested highways and overcrowded airports, Obama stressed the need of a smart
transportation system that would be updated to the 21st century. By doing so, travel time will be reduced which will create in increase in mobility. The figure that was initially presented would be $8 billion which would be spent over two years with an additional $1 million that would be used in the span of the next five years.
Although funds from the stimulus package had not been dispersed to particular projects, the Transportation Department would have begun to receive money by the close of the summer.
Plans for the high-speed rail are to link cities within the Northeast, California, Florida and other regions with the usage of “bullet trains” that drive at 110 miles per house.
