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Modern MBA

Modern MBA

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The Doom Loop of American Public Transit

Video Overview & Insights

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— @ModernMBA

Public transit is divisive, but nowhere does it draw more controversy and deliver worse results than in the United States. This is the richest nation on Earth, yet driving is far more common than public transport and ridership here is low relative to any other developed country. In the decades after WW2, the U.S. deliberately reshaped itself into a car-centric nation. The “American Dream” sold families on a big house, a yard, the latest appliances, and your own car in the driveway. Yet cities like New York City, Chicago, Washington DC, San Francisco, and Boston all boast the highest public transit ridership in the country despite this generational prioritization of cars. While public transit has been underinvested through history, it’s not accurate to say that there’s been no investment.

U.S. public transit agencies serve fewer riders than their international counterparts, yet cost more money than anywhere else, with annual operating budgets that exceed billions of dollars. But whether it’s the rampant crime and poor hygiene or just basic on-time performance and fare collection, public transit in America ranks amongst the worst in the developed world in nearly every metric. Every year, they set a global record for how much money they lose. Adjust for currency, normalize into percentages, and the answer is the same - no one offers less, spends as much money, and still somehow loses more on public transit than America.

I live in new york city. what is to be done?

— @feedmewifi_477

Public transit advocates regularly trumpet that public transit is an essential service, not a business, and that measuring profit is useless. They point to valid double standards like how U.S. roads themselves to this day are not fully funded by drivers and their losses are covered by every taxpayer. But guess what? Even the transit systems in Europe and Asia that Americans idolize - the Taipei subway, Tokyo subways, Madrid Metro, or Paris RER - all chase profit. These agencies not only boast the best on-time rates and highest ridership in the world, but also operate like for-profit businesses. They publish annual reports, share progress, outline clear goals, track revenue, and explain their financial performance with the same diligence as a publicly-traded corporation.

Contrast that with the U.S., where transit agencies make no attempt to be independent. They burn through billions, ask for more, burn through that, and still cry about being underfunded even as service and rider experience decline. Instead of managing finances, they double down—hiring more people and raising wages year after year, deepening losses. Unless workers in Japan, Taiwan, Spain, Italy, or France are naturally more productive than Americans, there is no justification for higher costs and worse results. Underinvestment can explain delays, but it can’t explain this level of chronic mismanagement and inefficiency. In this episode, we dive into transit systems around the world to expose the uniquely rotten economics of American public transit—where unions drain public funds, stifle innovation, and cut backroom deals with politicians to protect their own interests.

right right, unions bad. bust all of them

except police

— @Phaetburger

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I would really like to “chat” with LLMs about this video. I can’t easily copy the transcript to AI and ask questions but it would be nice to be able to show it the slides. For now I can just screenshot the ones I want.

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Republicans like to promote their freedom to drive while forcing people without a choice to use public transportation

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how did I not get into this channel sooner. I can’t believe I’ve been reading/hearing about this for years, but nobody broke it down like this, to where you can actually see what’s going on.

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Disgusting anti-labor, anti-human, weird Japan obsession video that would lead to disastrous results for public transit if someone in power took seriously. Great YouTube video though, got the brigade you were looking for.

Why are you tunnel visioning on worker pay instead of asking how we can serve more people? You are declaring “overstaffed” based on the flawed metric of ridership to worker ratio: that’s not how to staff public transit. If more people took the CTA in Chicago, would it actually be overstaffed?

If we cut in these areas because we are so called overstaffed, many of these systems would collapse entirely. Boston 2022, Chicago CTA slashing 52 bus routes a few years ago. APTA says 71% of public transit services across the US had to be cut because of labor deficits.

You’re also ignoring the cost of living in US cities. $120k for a CTA worker in Chicago is hardly overpaid.

Here’s a better take than any of the entire video: YOU CANNOT HAVE A BUSINESS MODEL TRANSIT SYSTEM IN A COUNTRY BUILT AND HEAVILY SUBSIDIZING FOR CARS.

— @AlexNoC137

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I sure would not want to ride on the New York City subway. That being said I've seen videos of European cities with all the crime, drug addicts and panhandlers/pick pockets and I sure wouldn't want to ride on their subways either...

— @sam555537

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Blacks

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Isn’t most of the problem that the cheapest time to build infrastructure is always last year? Investing in public transit early allows for a more efficient economy overall, and the surpluses from that efficiency compound over time. These countries are, in this way, decades ahead. The only way to catch up would be massive federal capital expenditures that override local idiosyncrasies.

— @swaguelclemens9164

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We are such a trash country.

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Democrats and leftists refuse to keep certain demographics under control, and instead allow them to terrorize mass transit users.

— @Karim7Hearth

More User Perspectives

@

the american dream

@roycewilliams7695
@

luxemburg is free. you gonna mention that?

@madmayson
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It is rather intense. I hate that you dive those poor New Yorkers. I know unions work differently than the USA 😊

@mori211
@

Public transit sucks in Vancouver too. Enjoy breathing in shit particles anf second-hand fentanyl.

@reuploadify
@

Some buses run once every 45 minutes or longer in the Bay Area. If i miss a bus in Europe or Montreal the next one is less than 5 minutes away.

@kicka149
@

Stop. Blaming. Capitalism. You will never solve the problem if you can’t identify it. It is corruption and the failure of policy makers. Not capitalism.

@JackHubert05
@

The US is an example of Capitalist greed gone awry. Get those old near-dead buffoons out of power and replace them with non-political leadership that are young enough to have vision (both figuratively and literally) and that'd be a good start. Similar issues in Canada, the UK, Australia...

@hs1296
@

biggest problem with public transit are the homeless

@CubeGleaming
@

America certainly has a transportation problem

@ecoRfan
@

Everything sucks in the drug and homicide ridden shit hole known as America

@leeh4542
@

Oh, this channel is in favor of unionbusting. Profits for shareholders above all else

@ianhomerpura8937
@

you have a 1/4 chance of being shot or stabbed by a gang if you live here for a decade. and you want me to trap myself in a metal box with people i don't know with some random i don't trust whos likely drunk driving? nah im good.

@DreamTheory1994
@

this is such a good video. i hope that people raise awareness of this issue of overspending on labor costs

@zillion8954
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America has a race problem.

@abrvalg321
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Because black people. Saved you 67 minutes

@Outplayed5962
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preach brother

@boomgatbing
@

Those cities you listed for highest public transportation are using the transport infrastructure as a gathering place for those who need to be in jail or mental institutions.

@ithinkaboutthings9052
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Pple rememver how Irina Zarutska was randomly stabbed to death by some nutcase, keeping people scared of using public transport.

@ludwigvanel9192
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And the lefty politicians, that are all collectivist/socialist activists, deny any wrong going with THEIR public transport systems. Surely the guy making this vid, knows that?

@ludwigvanel9192
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Why do cities like NYC, SF hsve the highest OT ridership in the country? 2 reasons:
overpopulation, no space for cars
lefty politicians

@ludwigvanel9192
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wsr torn Europe caused health care to be scarce and expensive.
So,inba way, Hitker did not lose the war.

@ludwigvanel9192
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Slight issue with the claim/premise:
public transport does not work "everywhere else",
In the Netherlands, for instance, govt keeps subsidizing it, because otherwise it would have gone bankrupt, with all the empty trains and buses, wasting vast amounts of energy. To keep the energy wasting ongoing, and hopefully destroy the climate, the govt has to keep subsidizing it. And because the govt subsidizes PT, that does not have to make any effort to please customers. The only reason for the existence of PT, is: so govt can get away with bullying motorists, that through paying outrageously high fuel prices subsidize the weapon the govt uses against them

@ludwigvanel9192
@

I have issues with some of the wage charts around 19:00. Of course US workers serve less passengers per worker, that is solely due to fixed and variable staffing. You need at least 1 person at the ticket counter whether a station serves 10 riders a day or 100,000. So these Asian cities with much greater ridership can take advantage of lower staff per rider, since a busy station might only need 1-2 extra staff members for an extra 99,000 riders.

@roryh2241
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America has the best public transportation in the world. I've been to America a few times and it's far superior to Japan's.

@ンバイバディエンヌ1世
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Look at any of the large cities On Google Earth who had most of their growth after World War 2. These cities are almost all parking lots significantly more space is allocated to sport parking lots than any residential buildings or commercial spaces

@owenhowever1958
@

you can only win the game by cheating

@raul_dubs
@

At 7:54 you can Be re assured the EU transport is just as corrupt however the difference is that in the EU it's way easier for governments to lie about statistics especially regarding profitability. If the EU bosts profits you have to take that with many grains of salt.

@lxsnjn-ll6ol
@

Black people

@thekivster
@

Australian cities have more quarter acre block houses than anywhere, but they also have public transport to the resulting sprawl. The idea here is that you use public transport or your car depending on the sort of travel you are doing. If you want to commute to work you use public transport, if you want to go grocery shopping you use the car.

@MrToryhere
@

N

@RoyvanKeulen
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Acting like overtime exploitation is only a thing within the American public transit sphere is insane. They aren't even the worst abusers of overtime, which is actually police.

@deathcare
@

The problem with transit in America can be summed up in one word: Americans.

@edwardmiessner6502
@

haha, great!

@mediapyme2549
@

US public transit is essentially funded and run at the MUNICIPAL level with next to no assistance from state and federal governments- in term of the scale of costs.

In US, each of the 50 states is similar in size to European nations and Japan and Taiwan, eg. That is, the geography coverage is similar as a nation for each of 50 states.

In Europe, Japan and Taiwan, their public transit often are run by their national government or heavily subsidised by their national government.

All of the metro rail systems in various cities in Taiwan get initial funding for construction from their national government. The operators are municipal based (they have only 2 layers of governments) and they once the networks are built just need to maintain it and pay for upgrade slowly, again assistance from the national government. These assistances are not shown in the P&L at all.

In Paris metro, it’s similar. Their national government had/has put initial costs of constructions of the network. Their national government/city then runs the network with lower total costs and need only slow maintenance and upgrade of network with national subsidies.

Japan too has their national government set up different networks and run them by national bodies.

HK too with funds initially paid by the HK government and the operator just runs the services with again government subsidies on infrastructure upgrades.

In US public transit has not the same level of support, from day one, from either the state or federal government. This automatically means they have worse service and run at large losses. Amortisation of self-funded infrastructure upgrades kill any likelihood of profits.

It’s balance sheet item shifting from one entity to others in other regions of the world.

Even the venerable bullet train in Japan had to be reorganised with national government took on the debts and losses cumulated so the new set up could be slightly profitable- but likely will not long term.

In Australia which geographically similar in size vs US, our state government runs the rail and bus and ferry services.

The bus here in my state (Sydeny as the capital) is run by private operators. But they are heavily subsidised so their reported profit is no guide to their operations. They don’t even pay for the purchase of busses themselves or maintaining them in the usual sense.

We also in these last several years built a driverless suburban rail in addition to the existing extensive network for Sydney metro region. These driverless new additions are run by private operators. But aging, they paid no initial construction costs or even regular upgrades of infrastructure. So their P&L are not realistic reflection of real costs. They don’t buy and own the train carriages at all. It’s another state authority that is the owner.

Our freight rail operations in my state are also mostly private. But the tracks and infrastructure are built and maintained by the state government authorities. Again the P&L for our freight rail industry is not that real. But even their rolling stocks are mostly wined by the state authority.

Same with UK rail services outside London Tube. Their private operators make money but they never put a cent in construction of the network or pay for the maintenance of the network infrastructure in the first place. So their P&L are what?

Municipal based public transit by its limitations of population size and economy always means low quality of services and poor infrastructure upgrade. The resources possible for use are minimum vs state or national operations.

The US public health and education systems too also suffer due to the fact that it’s the municipal governments that run them. Weak funding’s due to low take of municipal tax revenues of course leads to low quality outcomes.

The US system as a whole should be revamped. The state governments should take over in public transit, school and public health hospitals plus police enforcement. The sharing of resources should be elevated to among all state residents.

Again, each of 50 US states, in geographic sense, is like European nations, Japan Taiwan Korea etc. Hence the US states should run all of the public services instead of leaving to the municipalities.

@perhapsme988
@

This is wonderful. Personal transportation (via road/vehicle or bus/train) is incredibly subsidized in the US by the government and non-rider.
In most of the world, owning a vehicle, purchasing petrol, driving on a road is WAY more expensive. So are fares on busses and transit and inter-city trains.
USA thinks things should be "free" == subsidized by others, low-quality, poor service.

@yuckyool
@

Many more people would consider public transport once an El Salvador style clean up of the criminal underclass has made the streets safe

@LuceAppreciator
@

The problem with public transit in most of the US is that if you use it, you'll be surrounded by the kind of people who take public transit. Mostly people with no other option, usually the dregs of society. Not just the working poor, but also criminals, welfare types, the sick and diseased, uneducated immigrants, the mentally ill, drug addicts, etc.

@libertarian4323
@

I am absolutely not going to drive for many myriad you're very and different reasons public transit and I like it the only reason why I would voluntarily riding a car as if someone else was driving did I knew it was going to take care of me I don't see many problems with our public transit but I'm not saying this guy is wrong to say what he said

@Jay-v1e7u