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    513. Should Public Transit Be Free? (Update)

    en-usNovember 30, 2023

    Podcast Summary

    • The Debate Over Making Public Transit Free in New York CityNew York City's MTA network, with the largest bus fleet and most subway and commuter rail cars in the US, serves over seven million weekly riders. The argument for making public transit free includes environmental, economic, and social benefits, but ethical questions arise about riders contributing or not.

      Public transportation plays a crucial role in New York City, with the MTA network having the largest bus fleet and most subway and commuter rail cars in the US. New Yorkers rely heavily on transit, with over seven million weekly riders before COVID-19. Although fares only contribute 25% of the MTA's annual $20 billion budget, there's a growing argument for making public transit free due to its environmental, economic, and social benefits. However, the idea of not paying for transit and forming a solidarity fund to cover fines, as done by the Plonka group in Stockholm, raises ethical questions about the relationship between transit and society. While some argue that everyone should have access to free transit, others believe that riders should contribute to the system. The debate continues, and it's essential to consider the implications of various approaches to funding public transportation.

    • Free public transportation as a step towards economic mobility, racial equity, and climate justiceMaking public transportation free can significantly improve economic mobility, racial equity, and address climate change by increasing access to essential services and opportunities for all.

      Mayor Michelle Wu of Boston believes that free public transportation is a transformative step towards economic mobility, racial equity, and climate justice. According to research, transportation access is a crucial factor in a family's ability to rise out of poverty. While the fare for public transit may seem small compared to other expenses, it adds up and can limit people's access to essential services and opportunities. The mayor's goal is to make public transportation free for everyone, building on the city's history of innovation. This proactive approach aims to address the systemic issues that hinder some communities and create a more accessible and equitable city.

    • Investing in shared public resources benefits everyoneBoston plans to eliminate transit fares for equitable access, but careful planning and significant government subsidies are needed.

      Investing in shared public resources, such as education, libraries, parks, and public transportation, benefits everyone in a community. Boston, known for its historic firsts in public education, libraries, and parks, is considering eliminating transit fares to reduce inequities and improve access. This move would make Boston the largest American city to offer free public transit. However, such a transition requires careful planning and significant government subsidies, as farebox revenue typically covers only a third of operating costs. For instance, Kansas City, Missouri, implemented free transit in a phased manner, starting with veterans, schools, and safety net providers, before making it free citywide when they were already 60% covered. The operating costs of transit systems are mostly funded by government subsidies, with fares covering only a fraction. By focusing on equitable access to public transportation, cities can improve the lives of their most financially disadvantaged residents.

    • Free transit leads to increased ridership and savingsEliminating transit fares in certain areas boosts ridership, particularly among low-income individuals, and generates operational savings through reduced fare collection costs and increased efficiency. This leads to fewer cars on the road, easing congestion and reducing pollution.

      The elimination of transit fares in certain areas, such as Kansas City and Boston, has led to increased ridership, particularly among low-income individuals, and operational savings due to reduced fare collection costs and increased efficiency. This has resulted in fewer private cars on the road, easing congestion and reducing pollution. However, it's important to note that the cost savings are not a steady state, as inducing demand for more buses, drivers, and depots may be necessary. While the idea of free transit for all types of trips may be appealing, it's not a one-size-fits-all solution, and careful consideration should be given to the specific circumstances and potential costs of each transit system.

    • Transportation expert Brian Taylor explains elastic demand for roads and public transportChanges in price or service can significantly impact people's demand for using roads or public transport, making it elastic rather than fixed.

      Transportation expert Brian Taylor argues that people's demand for using roads or public transport is not fixed, but rather elastic. This means that changes in price or service can significantly impact behavior. For instance, making public transport free or increasing its frequency can encourage more people to use it, even if the price remains the same. Taylor's research, conducted at the premier transportation research institution in the world, UCLA's Institute of Transportation Studies, aims to help public officials make informed decisions despite the counterintuitive nature of transportation. A notable example of this elasticity in action is the pilot program in Boston for free buses, which led to increased ridership and positive feedback from users due to faster boarding and alighting, as well as improved service reliability.

    • Balancing inclusivity and ease of use in public transit fundingImplementing free public transit can benefit certain groups but may create bureaucratic challenges. A nuanced approach is needed to balance inclusivity and ease of use.

      The complexity of paying for public transit can be a significant barrier for some users, and the idea of free public transit is not a straightforward answer. While it may benefit certain groups, such as students and seniors, implementing a means-tested system can also create bureaucratic challenges and potential exclusion of those who need it most. The speaker also emphasized the importance of considering the role of cars in the context of public transit and encouraged listeners to explore previous episodes on transportation-related topics. Ultimately, the discussion highlighted the need for a nuanced approach to public transit funding that balances inclusivity and ease of use.

    • Public transit's utility varies greatly depending on the environmentIn some cities, public transit significantly increases mobility for a large population, while in others, its utility compared to private vehicles is much lower. The best solution for increasing mobility depends on the specific context and needs of each place.

      Public transit is highly context-specific and its utility varies greatly depending on the environment in which it operates. For some cities like New York, public transit plays a significant role in increasing mobility for a large population. However, in other places like Bakersfield, California and Tulsa, Oklahoma, the relative utility of public transit compared to private vehicles is much lower due to the incentives in those places. Additionally, the use of public transit is highly asymmetric, with a small share of the population riding frequently, another chunk riding occasionally, and most people not riding at all. The mayoral candidate in Boston, Michelle Wu, argues for free public transit as a public good and a right to mobility for every person. However, the decision to invest in public transit versus providing cars for low-income households is a complex one, as access to mobility in general is seen as a positive outcome. The research of Brian Taylor and his colleagues at UCLA shows that the erosion of transit ridership in Southern California was largely due to households gaining access to motor vehicles. Ultimately, the best solution for increasing mobility depends on the specific context and needs of each place.

    • Price automobiles to cover negative externalities and subsidize public transitTo reduce reliance on cars and encourage public transit use, price automobiles for their true cost and subsidize public transit to make it affordable and accessible.

      To encourage the use of public transit and reduce the reliance on cars, it's essential to price automobile use accurately to cover the negative externalities, such as pollution and congestion. Simultaneously, subsidizing public transit to make it more affordable and accessible is crucial. The London congestion charge serves as an example, where charging for driving into central London has helped reduce emissions and increase bus ridership. However, it's essential to provide alternatives to driving, like improved public transit, to ensure people can make the switch. The goal is to create a balance between incentives and disincentives to ultimately shift transportation patterns towards more sustainable and equitable solutions.

    • Factors for effective public transit systemsAffordable and convenient options like park and ride systems and express buses, congestion pricing, and higher driving costs can encourage mode change from cars. Political implications can result from successful public transit initiatives.

      Effective public transit systems require a combination of factors to encourage mode change from cars. This includes affordable and convenient options like park and ride systems and express buses, as well as congestion pricing or higher costs for driving. The success of such initiatives can have significant political implications, as seen in the case of Gothenburg, where the lack of investment in public transit led to public backlash and a change in power. The goal of public transit is to serve both those who cannot afford or are unable to drive, and those for whom driving is more convenient. However, the opportunity cost of eliminating fares should be carefully considered, as the benefits may not always outweigh other potential investments. Ultimately, the success of public transit depends on providing attractive alternatives to driving that appeal to a broad range of commuters.

    • Making Transit Free vs. Improving ServiceInvesting in improved transit service leads to greater ridership and benefits for commuters, rather than making transit free.

      While making public transit free can be an appealing idea, the evidence suggests that investing in improved service is a more effective way to increase ridership and benefit commuters. The MTA, which oversees mass transit in New York City, is currently conducting a pilot program of free transit on certain bus lines, but the initial data shows only modest increases in ridership. The MTA's chair and CEO, Janna Lieber, emphasizes that what commuters value most is reliable, frequent, and faster service. The MTA's plan to charge drivers to enter certain areas of Manhattan, known as congestion pricing, is expected to generate a billion dollars a year to invest in transit improvements. This approach, rather than making transit free, will help address the transit agencies' budget deficits and improve the overall system for all commuters, including those who continue to drive.

    • Factors driving the decision to pilot free bus routes in MTA systemEconomic arguments suggest that removing fare barriers could boost mobility for low-income individuals, but concerns include fare evasion, cost of extending free service to subways, and dealing with social issues

      The decision to pilot free bus routes in the MTA system was based on factors such as ridership, equity for low-income communities, and access to employment. However, concerns were raised about the potential impact on fare evasion, the cost of extending the free service to other modes like subways, and the potential for transit becoming responsible for dealing with social issues. Economists argue that removing the barrier of paying for transit could significantly increase mobility for low-income individuals. While there is support for making transit more affordable for this demographic, there is debate about whether resources should be spread evenly or targeted specifically towards those in need. Ultimately, the decision to offer free transit is a complex issue with various considerations and potential implications.

    • Exploring Complex Topics with Freakonomics Radio's Engaged AudienceFreakonomics Radio fosters intellectual curiosity with thoughtful conversations on complex topics, including a new project to reform police management and the potential for corporate sponsorship of public transit.

      The host of Freakonomics Radio expresses his gratitude for their diverse and intelligent audience, who engage in thoughtful conversations about complex topics. The show's upcoming episode delves into a new project at the University of Chicago, which started as a response to social unrest and aims to reform police management across the country. The host also entertains the idea of corporate sponsorship of public transit lines as an alternative to charging fares. Overall, Freakonomics Radio continues to explore the hidden side of various issues, fostering intellectual curiosity and engaging conversations among its audience.

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