Dr. Brooks Robinson\ Black Economics.org
Photos: Wikimedia Commons
The only national provider of passenger rail service in the US is Amtrak, which is classified as a nonmarket (not for profit) Federal Government corporation. In 2000, Amtrak began providing
high-speed rail (HSR) services primarily in the “northeast corridor.” Notably, while overall
Amtrak operations have been loss-making since its founding in 1971, its HSR operations have
produced profits.[i] The latter outcome suggests that Amtrak’s HSR operations are efficient, which is atypical of most nonmarket corporations. In fact, some might propose that, given their profitability, separability, and the availability of potential investors, Amtrak’s HSR operations should be privatized because there is no market failure that requires government intervention.
Relatedly and importantly, Amtrak reports that the Infrastructure Investment and Jobs Act of 2021 provided ~$100 billion that is intended for the corporation, a portion of which—presumably—
would be used to improve and expand Amtrak’s HSR operations during FY 2022 to FY 2026.[ii]
Enter a private sector (for profit) corporation with seasoned leadership, a successful history, and
with great prospects for producing a transformative and state of the art HSR system that would
benefit millions of Americans with its services and income, earning, and wealth building
opportunities. This corporation, the Finley Group, Inc., says that it only requires approvals from
all three levels of government to commence developing an I-20X HSR Project that is said by
experts to be well designed and has received serious overtures from investors willing to provide
tens of billions of dollars for building out the project.iii The I-20X HSR Project would connect
Atlanta to Houston along the Interstate 20 (I-20) Highway that traverses Georgia, Alabama,
Mississippi, Louisiana, and Texas with stops at key cities along the way.
In 2022, we explored and wrote about the I-20X HSR Project.[iv] Today, we continue to be appalled
that required approvals have not been provided by officials up and down the government hierarchy.
The Finley Group, Inc. is a successful corporation with sound prospects for producing a direly
needed and beneficial service without subsidies or other government assistance. Government
officials’ refusals to provide necessary approvals for the project should raise grave concern among
all those who would benefit from the I-20X HSR Project as customers, employees, entrepreneurs,
or investors.
In addition, the status quo should motivate concerns about our government’s long-standing history
of, and willingness to, permit and even promote Black business development if it is constrained to
personal care products and services and entertainment related industries. But in the new fairness
and merit-based order, key-holding government officials should unlock doors to opportunities in burgeoning goods and services producing industries that will enable Black Americans to
participate fully in the nation’s growth and development—and thereby, our own growth and
development.
Dr. Brooks Robinson is the founder of the Black Economics.org website.
End Notes:
[i] Amtrak (2024). Consolidated Financial Statements: National Railroad Passenger Corporation and Subsidiaries (Amtrak), Years Ended September 30, 2024 and 2023, With Report of Independ Auditors. https://www.amtrak.com/content/dam/projects/dotcom/english/public/documents/corporate/financial/Amtrak-Audited-Consolidated-Financial-Statements-FY2024.pdf (Ret. 031225).
[ii] Ibid. (Amtrak, 2024; see Notes to Consolidated Financial Statement, 2, on page 10).
iii For a comprehensive overview of the I-20X HSR, visit the following Internet website: https://i20x.com/ (Visited 031325).
[iv] Brooks Robinson (2022). “Moving Up the Economic Track.” BlackEconomics.org.
https://www.blackeconomics.org/BEFuture/mutet.pdf (Ret. 031225).
