While it would be inappropriate to risk taxpayer funds to support leisure travel in the best of times, it would go beyond the pale to provide funding while Congress and the President continue to (unsuccessfully) argue over what taxes to raise and what programs to cut. If the project were financially viable, it would be financed by the commercial financial sector. They have passed on the gamble. So should the federal government.

Wendell Cox is a visiting fellow at the Heritage Foundation. In a 2000 report, he predicted the eventual bankruptcy of the Las Vegas Monorail, which project promoters claimed would be able to repay $600 million of bonded debt. That report used similar analysis, and its accurate prediction of both bankruptcy and realistic ridership was predicated on overly optimistic revenue and ridership statistics, which were the basis of bond issues.


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