A high-speed rail line between Southern California and Las Vegas moved one step closer to reality Monday when ground was officially broken to mark the start of construction on the project.
Rail also has a sort of hidden economic benefit in that once you overcome the network effect, it boosts economics on a larger scale. Some people in China thought it was crazy for the government to build high speed rail at the speed and scale that they did, and that it would never compete with flights, etc. And yes, the line all the way out to Xinjiang is not profitable and subsidized by other lines. But the overall benefit to the Chinese economy by connecting all the major cities together can’t be underestimated.
Rail also has a sort of hidden economic benefit in that once you overcome the network effect, it boosts economics on a larger scale. Some people in China thought it was crazy for the government to build high speed rail at the speed and scale that they did, and that it would never compete with flights, etc. And yes, the line all the way out to Xinjiang is not profitable and subsidized by other lines. But the overall benefit to the Chinese economy by connecting all the major cities together can’t be underestimated.