Record Railroad Profits Call for 'Do No Harm,' Not Harmful Legislation
🚂 Record Railroad Profits Call for 'Do No Harm,' Not Harmful Legislation.
The recent legislation proposed by Senators Tammy Baldwin and Roger Marshall called the "Reliable Rail Service Act," has raised concerns reminiscent of the 2008 financial crisis. The senators argue that the record profits of the nation's largest railroads warrant revisiting the "common carrier obligation" rule. However, the legislation is seen as excessive, as it risks interfering with a thriving industry. Instead, it is essential to allow profitable railroads to foster healthy competition naturally. High profits can attract traditional shipping sectors and innovative newcomers, thus ensuring market efficiency. The senators' claims of worsening service and high prices can be addressed by the competitive forces of the market. In a market economy, legislation to encourage competition becomes unnecessary when profits signal the presence of competition.
Union Pacific (UP) is set to resume its efforts to implement one-person train crews by conducting a pilot program in Nebraska and Colorado.