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Inflationary Effects on Transportation

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  • John W. Fuller

Abstract

The U.S. transportation sector is faced with uncertainty, overextension, and bankruptcy, due less to energy-price inflation or the high cost of replacement capital than to a long history of inappropriate government policies. Economic regulation and government promotion, in virtually every mode of transportation, have led to inflexibility and technological stagnation. A complicating factor in this inflationary period, however, is the tie between energy consumption and public user-fee receipts, which has led to modal service declines or higher subsidies as energy prices have risen. A healthy transport sector is an unlikely prospect unless fundamental policy changes occur in pricing, government institutions, and planning.

Suggested Citation

  • John W. Fuller, 1981. "Inflationary Effects on Transportation," The ANNALS of the American Academy of Political and Social Science, , vol. 456(1), pages 112-122, July.
    • Handle: RePEc:sae:anname:v:456:y:1981:i:1:p:112-122
    DOI: 10.1177/000271628145600110
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