Arlington, VA — The American Consumer Institute (ACI) has released a report highlighting the dangers of reintroducing burdensome rail regulations, including forced switching policies and revisions to rate adequacy standards. ACI warns that such policies, proposed by the Surface Transportation Board (STB), could reverse decades of consumer benefits, harm the rail industry’s financial stability, and lead to higher costs for consumers and taxpayers.
Read the full report here.
Key Takeaways:
- Historical Success of Deregulation: Rail deregulation in the 1980s, through the Staggers Rail Act, revived the industry, doubling productivity, reducing inflation-adjusted rail rates by 45%, and providing consumers with $10 billion in annual economic benefits.
- No Evidence of Market Failure: ACI finds no evidence of significant anticompetitive harm or market failure in the rail industry to justify new regulations like forced switching or rate controls.
- Negative Consumer Impacts: Reimposing regulations would increase operational costs, reduce rail investment, and shift freight to trucks, resulting in higher consumer prices, increased infrastructure costs for taxpayers, and greater environmental harm.
The American Consumer Institute urges the Surface Transportation Board to halt proposed regulations that threaten the rail industry’s efficiency and consumer benefits. Congress should take action to prevent regulatory overreach and protect the hard-won gains achieved through rail deregulation. Policymakers must ensure that any new regulatory measures are backed by sound economic evidence and serve the public interest.
For more information or to discuss this issue further, ACI is available to engage with stakeholders and policymakers.
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The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.