[Doctor Stochastic]

So, let the airlines go broke. (Or let them make a profit.) The lack of allocation of costs due to government subsidies means that it's impossible to rationally allocate funds. If people really like to fly, perhaps they should pay. I do not know which of airlines or trains or cars or canals are better; I know that it can't be computed as of now. Politics drives monetary allocations, not markets.

[Publius]

The lack of allocation of costs due to government subsidies means that it's impossible to rationally allocate funds...I do not know which of airlines or trains or cars or canals are better; I know that it can't be computed as of now. Politics drives monetary allocations, not markets.

Stated succinctly and eloquently. Because of the strong belief in a government role in "internal improvements", the government has been using its "hidden hand" since Madison's presidency. The author wants us to accept that fact and go to the next level -- subsidizing the railroads because it is cheaper than further subsidies for the highways.