Metro Atlanta unemployment jumps to 10.8 percent

The latest unemployment numbers for Georgia are bleak. According to this report there are nearly 300,000 people unemployed in the metro Atlanta area alone. That leaves alot of people using the safety nets that they used to hold up for others.

I wish the economy would turn around tomorrow but the truth is that the state of Georgia is facing a 2.4 billion dollar budget deficit and the economy is much more likely to get worse before it gets better.  The truth may not be pretty but we have to accept it and act accordingly.

The good news is that the state of Georgia is in far better shape than states like California, New York and Michigan. If we get our house in order now, Georgia will prosper as companies flee those bastions of tax and spend politics.

http://bit.ly/c6mF7H

MARTA vs. Roads and privately operated transit

This is another chapter in my continuing response to commenter Paul. In this chapter I will try to sort through the following paragraph to make some sense of the claims and arguments and then answer them to the best of my ability.

 “You say MARTA is “a government subsidized pseudo-monopoly.” Again, I refer back to the absolutely massive amounts that are spent on roads. Yes, roads are used for transport of food and goods, but so is rail. The amount spent on public transit in this country is absolutely nothing when compared to the amount spent on roads. Your statement that private sector companies would step in if there wasn’t a governement “subsidized” transit system has shown to be false over and over again. Look at cities without rail transit – where are the private lines? Why hasn’t some private developer built transit lines where there is no government competition? In fact, there is only one place in the entire country where that has happend – the “South Shore Line” in Northern Indiana/Illinois, and even that recently had to receive government money to stay afloat. Long gone are the days of private streetcars.”

Commenter: “Again, I refer back to the absolutely massive amounts that are spent on roads. Yes, roads are used for transport of food and goods, but so is rail”

Response: Surely you jest. As I pointed out before roads are the lifeblood of our entire society. To compare roads to public transportation is patently absurd and it shows that you are grasping at straws. “Massive amounts” are spent on roads because everything you need to survive is dependent on functioning roads. Roads are not an option they are a necessity. Public transportation would not exist if not for the roads that buses and cars use to reach the train station. Railroads do transport goods but they don’t deliver them to stores and unless MARTA has started a freight service it is just silly for you to bring up railroads in a discussion of public transportation. Also, roads are paid for by user taxes. Every gallon of gasoline sold in Georgia costs 50 cents more because of federal, state and local taxes.

Commenter: “Your statement that private sector companies would step in if there wasn’t a governement “subsidized” transit system has shown to be false over and over again. Look at cities without rail transit – where are the private lines?”

Response: I never said anything about private rail. I said private transit system. That private system would probably be composed of buses, cabs and other options just like it is in the vast majority of cities around the world. Doesn’t it seem odd to anyone else that there are only a handful of cities in the United States that even have commuter trains and those are the cities with the worst traffic. Perhaps the billions of dollars used to subsidize MARTA over the years could have served a better purpose and Atlanta wouldn’t face the traffic problems we see today.

In which we discuss MARTA and “equity”

Commenter: “I also have to re-stress the equity issue. In your response, you stated that you don’t want to “subsidize [my] choice” to take MARTA. What about the people who have to take MARTA? The poor, the elderly, those that can’t drive for whatever reason (legally blind, narcolepsy, DUIs, etc). Our nation has an obligation to provide them with a way to to get to the store, to work, to medical appointments. Yes, the road system works for most people, and I am happy that our taxes pay for roads. But it doesn’t work for everybody, and that is why public transit is needed.
Here’s an article from the American Planning Association showing how public transit, specifically MARTA, is needed to promote equity and availability of jobs, and has economic benefits because of this: http://www.nvc.vt.edu/uap/docs/TSpubs/sanchez_connectionpublictransitemployment.pdf ”

Response: So now your defense of MARTA is “equity”? What do you mean by equity? The dictionary defines equity as “the quality of being fair or impartial”.  How is MARTA fair?

You are apparently a healthy, gainfully employed person that makes the choice to take MARTA because subsidies from taxpayers like myself make it artificially cost efficient for you. According to MARTA you only pay 27% of the cost of your commute. Based on a $2.00 fare that means the actual cost of your trip would be $7.41 each way.  If the goal is “equity” then MARTA should charge people that aren’t disabled or disadvantaged the full $7.41 and use the money to provide better service free of charge to people that are less fortunate. We can agree or disagree whether that is a good idea but I don’t see how anyone could say it is less equitable.

You also claim that a report justifies “how public transit, specifically MARTA, is needed to promote equity and availability of jobs, and has economic benefits because of this”. I have thoroughly reviewed the report you identify and there is absolutely no evidence to support your claim in there. In fact the report clearly states on page 3:”Despite the lack of evidence, public transit system enhancements continue to be recommended to help solve central city unemployment problems” (emphasis mine). The report you refer to also says,”Certainly the study results do not indicate a causal relationship between increased access to public transit and increased labor participation.”

As I have stated before, governments and their dependent agencies are inefficient delivery systems. Even if the goal of MARTA were to promote equity and create jobs it is not an effective way of doing so.

Spreadin’ the wealth (as promised)

Saw this article in the AJC this morning: http://tinyurl.com/d32y4y

To summarize, the article says that Georgia might get back $5 billion from the $800 billion stimulus package that President Obama is pushing right now. Seemed bad to me so I ran the numbers and you can judge for yourself.

$800 billion dollars divided by 50 states is $16 billion per state. This number won’t apply to every state but I live in Georgia and as the ninth most populous state I think it is a conservative estimate. So the stimulus package will cost Georgians $16 billion and we might get $5 billion back. Doesn’t sound very stimulating to me!

As a matter of fact it works out to a cost of about $1200 for every man, woman and child in the state of Georgia. So the next time a family in Georgia sits around the dinner table they can add up $1200 dollars a head to see how much our new president expects them to kick in for his stimulus package. Guess that’s what Obama meant by “spread the wealth”.