On The Wrong Track Summary

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Name: Nassuel Valera Article title: “On the wrong track” Source and article date: The Economist. May 4th, 2017. • What was the chosen article about? New York’s railways are in terrible shape. Essentially, how train tracks that are in need of much deserved maintenance are being the cause of train derailments and the loss of millions of dollars, causing delays of about a week, which lead to lost economic activity, such as delayed passengers costing their Manhattan employers for every hour delay a sum that goes beyond $10m, and Amtrak losing fares which pays for operating costs. In addition, for every derailment more damage is caused to the train tracks, thus having to close them down to make some quick not-so-good repairs to later on have them …show more content…

Amtrak is an odd entity which has its board appointed by the president and receives funding from Congress. Since the funding comes annually, Amtrak struggles to have a multi-year capital plan, causing Amtrak to not have capital to do much beyond basic maintenance. Meanwhile repairs backlog at $28bn, and tunnels and tracks needing upgrades all over the region. Also, a proposed Gateway tunnel would help ease the pressure on the network, at a cost of $24bn, linking between Newark, New Jersey and NYC under the Hudson river. Where the federal government agreed to split the cost with New York, New Jersey and Amtrak. But very little federal money has been spotted yet. Are facts that the author denotes within the article. Furthermore, the subway is still operating on a 1930s-signal system, damage caused by Hurricane Sandy in 2012 has not yet been repaired. Another storm, a tunnel crack or a high-speed derailment would be horribly catastrophic. Therefore, the rails are not the only thing in need of an update, but the system …show more content…

But the main focus would be steered towards where the budget to do such maintenance and repairs can be obtained from, since the federal government hides and only wants to deliver funding annually. • How does the article specifically relate to the material on the subject as it was covered in your assigned reading in the textbook (be sure to include page numbers where relevant)? This article goes back to the first few definitions that were encountered as the BUS& 101 class started such as profit, loss, and business, as well as others terms we got in the know of not so long ago, making this article lay in the General Economics topic. Where the author refers to the North-East Corridor (NEC) as the only part of Amtrak that turns into profit, thus making Amtrak not only be a corporation, but a business at it’s core since it’s looking for a profit. In addition, the current situation of the railway system seems to need some accounting help to manage the money that it receives from the Congress. Nevertheless, the knowledge obtained from the class helps to see this article and the issue from an entire perspective I did not have before. An accounting and business

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