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Are these supposed to make a profit? Isn't this a state-run project, like highways? Aren't the debts covered by the state anyways, via taxes? Also, economic

• MarkMc 10y ago
  > Are these supposed to make a profit? Isn't this a state-run project, like highways? Yes, high-speed rail could be worthwhile even if it doesn't make a profit. I haven't seen any figures about high-speed rail so it may be a good investment. But in general I think China's investment boom is bad in the long term. By taking on so much debt to fund projects that have little economic return China is setting itself up for a lost decade or two like Japan. > Aren't the debts covered by the state anyways, via taxes? Yes, the debt is effectively passed on to taxpayers. > Also, economic justifications are broad concepts.. how would it compare against a country like the US that has oil and people can therefore drive cars for cheap, whereas China doesn't have oil? Sure, you need to look at the economy as a whole and the cost of energy is a factor. But that would include the cost of coal-fired power to run the trains - including costs of pollution. > Is high-speed rail a more economically efficient system than cars? China already had slow-speed trains and fast airplanes. So the better comparison is between (a) upgrading the capacity of the existing rail and airport systems; (b) building an entirely new rail network.