"Have you seen what California is spending?" Yes. And context matters.
The key insight
Every form of transportation is subsidized. The question isn't whether to spend public money—it's which investments give the best return.
Let's talk about what we already spend
The US spends roughly $50 billion per year on highways. Airports receive billions in federal grants plus tax-exempt bonds. Airlines got $54 billion in COVID relief alone.
We don't ask highways to "pay for themselves." We don't expect airports to operate without federal funding. We invest in infrastructure because it enables economic activity.
The California question
Yes, California High-Speed Rail costs have grown significantly. But let's be honest about why:
- Land acquisition costs in California are among the highest in the world
- Environmental review and litigation added years and billions
- Starting from scratch—no existing HSR expertise or supply chain
- Political interference that changed the route and scope repeatedly
These are real problems. They're also solvable problems that other countries have solved. France's first HSR line faced similar challenges; their later lines were built much more efficiently.
What does HSR actually cost?
International comparisons show HSR can be built for $25–50 million per mile in most conditions. Even California's troubled project, once complete, will cost less per passenger-mile than expanding highway and airport capacity for the same demand.
The key metrics that matter:
- Operating costs: HSR typically covers its operating costs through fares (the Shinkansen and TGV are profitable)
- Economic return: Studies show $2-4 in economic activity for every $1 invested in HSR
- Avoided costs: Every HSR trip replaces highway wear, airport congestion, and emissions
The real comparison
Instead of asking "is HSR expensive?", ask:
- What would it cost to add equivalent highway capacity between LA and SF?
- What's the cost of airport expansion to handle growing regional demand?
- What are we paying in congestion, emissions, and accidents with the current system?
HSR is a major investment. So is every transportation system we have. The question is whether it's a good investment—and the evidence from around the world says yes.