The return of electric streetcars to American cities

USA Today reports that electric streetcars may be on the comeback in American cities. Because of a successful line introduced in Portland in the early 2000s, other cities, such as Dallas, Cincinnati, and Charlotte, are looking to build new streetcar lines with the help of federal dollars.

The irony of these new streetcar lines is that many American cities had effective electric streetcar systems in the past. The article provides a little of the history:

Horse-drawn streetcars appeared on urban streets in the early 1800s and were replaced by electric versions in the 1880s and 1890s, says Jerry Kelly of the Baltimore Streetcar Museum. In the 1930s, when the Great Depression put many people out of work, ridership fell. After a brief revival during World War II, affordable automobiles and cheap gas prompted many cities to pave over streetcar tracks, he says.

According to Kenneth Jackson in Crabgrass Frontier, the streetcars declined rapidly for several reasons:

1. The rise of the automobile, particularly in the 1920s. Millions of Americans bought cars.

2. Many streetcar lines were locked into cheap fares. Because many of the lines had been granted government licenses to operate, the fares were locked in for long periods. By the 1920s, many lines could only charge five cent fares when the costs of operating had risen. This led to less profit for the streetcar operators.

3. Public opposition to public subsidies for electric streetcar lines. While roads were viewed as a public good and deserving of government money, electric streetcars were viewed as private enterprises.

4. General Motors bought up a number of bankrupt or near bankrupt lines in the 1930s-1940s and replaced the streetcars with buses. While some see this as a conspiracy against mass transit, Jackson suggests streetcar lines were already in serious trouble and GM hastened their demise.

Overall, Jackson suggests the declining ridership plus the low fares and lack of government money meant that streetcar lines could not keep up: less riders meant less profit which meant fewer modernization efforts which lowered ridership further and so on.

Hotbed for exports is…Wichita?

The Financial Times reports that according to a Brookings Institution study, Wichita has the highest percentage of exports of any metropolitan region in the country:

Thanks to a cluster of aircraft manufacturers such as Learjet, Cessna and Hawker Beechcraft, the economic focus of Wichita – population 366,000 – is very different from the emphasis on services and consumer demand typical of 21st century America. According to a study published late last month by the Brookings Institution, a Washington think-tank, nearly 28 per cent of the city’s gross metropolitan product is sold abroad. That makes it the most export-oriented in the country, just ahead of Portland, Oregon – noted for its computer and electronics companies – and San Jose in California’s Silicon Valley.

Wichita is not who I would think is leading this list. But the article goes on to say that Wichita and some other places have figured out how to move beyond two lagging sectors of the economy, consumer goods and housing, to move forward. For the rest of the country’s economy to move forward, they may have to follow Wichita’s model.