Whydestiny.com

President Obamas has announced that the U. S government will be heavily investing in improving and increasing the speed of the nation railroads. This is one of his commitments of creating a greener economic and increase energy efficiency. He has two goals to meet:
1) Create world-class high-speed railroad corridors.
2) Improve the speed of existing infrastructure.

The cost for his great plan will be at least 13 billion dollars in the next 5 years. According to the report from Ohio State, high speed rail would run on 17 million dollars deficit for the state government per year. Its annual operation expense is 29.2 million dollars and only 12.2 million dollars can be generated in direct revenue. That means 17 million dollars need to be funded by the government. The current rail system in the United States have deficit for many years at about two billion dollars annually. The reason must be operating expense over income.
When we design a project first thing we have to see is if the project has potential to make profit. No department can and should sustain a long term lost. It is said there are two states refused to build the high-speed rail and prefer to use the fund to repair high way and bridges. Federal take the fund back to show a punishment. Another news said that the American companies that incharges the project has signed a contract with China for the Chinese have the best technique in this field. It seems that big amount of the high speed rail investment will go to China. How many jobs this project can actually create Obama doesn’t know.
A news in 10, Nov, 2010 disclosed that the high speed train system in China was losing money. Its interest cost is too heavy to be carried by the rail department. Population in China is 4 times more than the United States. Its high way system is much poor than the United States and people hardly own cars there. Many Chinese are working far from their hometown today and 90% of them use train as their transportations. In some place people have to wait on the line a few days to buy ticks in the busy season. There were 200 million people traveled in the end of Chinese New Year. In that kind of market, Chinese high speed rail still short of income. The new said the high speed rail from Canton to Wu Han only sold out 50% ticks since they started their business. From Shai Hai to Hang Chou, some time a big card had only one passenger. For this reason specialists suggesting the Chinese government to reevaluate their plan of building high speed rail.
I notice that once Obama said: thing that China has the United States should also have. His logic made me surprised. I hope his huge investment of building high speed rail is not base on the above reason. If he hopes that the project of high speed rail will create job he will make another huge mistake. California,the poorest state in the United States, is going to build a high speed rail that needs 100 trillion dollars investment altogether. Up to now bid from the Chinese is 20% lower than the other countries. The Chinese promise to create 1500 jobs in the first stage of project which cost 45 billion dollars. That means every $100 billion investment that Obama favor will create about 5000 jobs only. He hopes to make some changes and let the American remember him forever. It looks like building high speed rail will be one of his changes –a big change!