Can Higher Fares Save Public Transit?

Funding public transit is one of the biggest problems facing cities today. Often the trouble is that a few high-cost, low-ridership routes drag down an entire system. That puts policymakers in a tough spot. They might eliminate these unprofitable lines, as has been suggested before, but in doing so they would harm a considerable number of people who rely on that service as their primary mode of transportation.

Over at New Geography, Steve Lafleur revives the debate and argues that low fares are part of the reason transit lines are struggling. In response, he offers an admittedly "controversial" solution: "Transit should operate on a for profit basis and its prices should closely reflect market forces — even if it means that transit fares increase."