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Privatizing Amtrak Would Be a Disaster for Working People
Privatization of public institutions has an observable record of raising prices for customers, diminishing service quality, and degrading working conditions.
Jun 27, 2025
At a Senate Commerce subcommittee hearing earlier this month, former car salesman, wage thief, and current Ohio Sen. Bernie Moreno said the U.S. government should stop funding Amtrak, and argued in favor of handing it over to the private sector. Moreno and his ilk—including former White House dog, Elon Musk—perpetuate an old and tired right-wing tradition that is at best confused and at worst conniving: bashing all that serves the public good and venerating all that transfers wealth to private moneyed interests.
One might be tempted to give Moreno, Musk, and other practitioners of the ancient religion of market worship the benefit of the doubt; perhaps they really believe what they say. Maybe they truly think concentrating wealth and institutional control in the hands of a few corporate masters is what’s best for everyone. If that is the case, they are both far too bewildered, their minds far too infantile, to be in any positions of power and influence.
On the other hand, if Moreno and Musk are not in fact confused, then they must be aware that what they say is completely false. Privatization of public institutions has an observable record of raising prices for customers, diminishing service quality, and degrading working conditions. They know privatization is not good for the public, but it is good for private moneyed interests, like Moreno’s wealthy campaign contributors and billionaires like Musk, and that is what matters most to them.
It is clear that if we want a passenger rail system that consistently, effectively, and conveniently serves the public, the last thing we should do is privatize Amtrak.
For all the talk about Amtrak’s inefficiency, the record tells a different tale. Even with inadequate federal funding, Amtrak has made significant accomplishments. For example, though rail travel decreased during the Covid-19 pandemic, Amtrak set all-time records for ridership and revenue in FY24. In fact, Amtrak’s Northeast Corridor (NEC) ridership was 12% higher in FY24 than it was in FY19, before the pandemic struck, and the NEC’s FY24 operating cost recovery, at 123%, far exceeded the 100% statutory goal.
Speaking of efficiency—just how “efficient” is the private sector, anyway? Hack economists tell us that efficiency means getting the same or better results at a lower cost. A corporation gutting their workforce and skimping on maintenance to obtain higher profits is, by this logic, acting efficiently. The efficiency of a private business, therefore, depends on how much profit it can squeeze out of fewer workers, with cheaper materials, in worse conditions, and at greater risk to surrounding communities.
By laying off workers, cutting costs, neglecting maintenance, lengthening trains, and eschewing capacity expansion, the Class I railroads, with their Precision Scheduled Railroading (PSR) business model, must be sublimely efficient. After all, with after-tax profits in the billions, railroad corporations like Norfolk Southern, BNSF, and CSX must be doing something right. Just ask the folks in East Palestine, Ohio, how marvelously efficient Norfolk Southern is.
And there’s the rub. When priests of private enterprise like Moreno and Musk say public services should be privatized because the private sector is more efficient, they mean private entities deliver higher profits to their owners, not that they better serve the needs of the public. In fact, even when services and institutions are privatized, the public still pays for them in numerous ways—with lower wages and worse jobs, decreased or eliminated benefits, displacement, money siphoned away from communities into private pockets, and so on.
For example, a 2009 study showed that, following privatization and outsourcing, food service workers’ wages in New Jersey K-12 schools were cut by $4-6, and many workers completely lost their health insurance benefits. In 2011, privatization of nursing assistant jobs at a home for veterans in Michigan saw the starting wage lowered to $8.50 an hour with no health insurance or pension benefits. Public nursing assistants, on the other hand, received $15-20 an hour, health insurance, and pensions.
In regards to rail, one can simply look across the Atlantic to see the results of rail privatization. Margaret Thatcher, high priestess in the cult of the market, privatized various public services, including some connected to the rail system. Her successor, John Major, started the process of privatizing the British rail system in 1993-4, and by 1997 the U.K.’s national rail system was under corporate control.
If anything, we should be asking ourselves why so many critical industries, like the Class I freight railroads, remain in private hands when our needs would be better served if these industries were publicly owned and operated.
The privatization of British rail was disastrous. Higher fares, deteriorated service, rampant underbidding by franchisees who then abandoned agreements, and neglected infrastructure that cost people their lives. In the first three years after privatization, 38 people died in rail accidents, and in October 2000, four people died in a derailment that was entirely preventable. The private owners, Railtrack, knew about the cracked rail that caused the derailment, but refused to fix it. These people were sacrifices made at the altar of profit. Talk about “efficiency.”
Recognizing that these devastating events were caused largely by the egregious negligence of private owners, Britain renationalized its rail infrastructure in 2002. A 2012 GfK NOP poll revealed that 70% of the 1,000 Britons surveyed were in favor of returning the rail system to public ownership. In October 2022, YouGov reported that a majority of British voters, including Conservatives, believe that utilities such as rail, water, and energy should be in the public sector.
After decades of failure under the experiment of privatization, the U.K.’s Labour government is currently taking steps to renationalize the British rail system. In the United States, we should understand what happened across the pond as a case study for what not to do. Privatization, in terms of its service to the public, was a complete flop. There is no reason to believe the privatization of Amtrak would be less of a flop.
It is worth noting that while Elon Musk was castigating Amtrak at a tech conference earlier this year, he compared Amtrak unfavorably to China’s exceptional high-speed passenger trains. In calling for privatization of “anything that can be privatized” while at the same time praising a state-owned rail system (he even called China’s trains “epic”), Musk showed the disingenuousness, or incoherence, of the market religion he shares with Moreno and many other delirious practitioners.
With all this in mind, it is clear that if we want a passenger rail system that consistently, effectively, and conveniently serves the public, the last thing we should do is privatize Amtrak. With increased (and long overdue) federal funding, Amtrak can invest in infrastructure and equipment upgrades and repairs, create thousands of well-paying union jobs across the country, and better serve passengers.
If anything, we should be asking ourselves why so many critical industries, like the Class I freight railroads, remain in private hands when our needs would be better served if these industries were publicly owned and operated. Why not democratize these enterprises? Wouldn’t you like a say?
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The Case for Public Ownership of US Railways
The toxic rail derailment in East Palestine, Ohio, was a symptom of a privatized rail system that prioritizes profit over public safety.
Aug 04, 2024
The National Transportation Safety Board announced in June that the infamous East Palestine, Ohio, freight train derailment was caused by a defective wheel bearing.
But that technical issue does not tell the whole story.
Federal investigators found that the railway company Norfolk Southern failed to communicate information to emergency responders in a timely manner, which contributed to the exposure of responders and the public to post-derailment hazards.
According to the June 2024 NTSB report abstract on the derailment and hazardous materials release, Norfolk Southern’s delayed transmission of consist information “also delayed the Ohio State Patrol’s recommendation to the incident commander that the shelter-in-place order be replaced by an evacuation.”
Norfolk Southern officials and contractors also provided misleading and incomplete information while advocating for an unnecessary vent and burn of tank cars carrying vinyl chloride. A vent-and-burn action is, according to the Federal Railroad Administration (FRA), a response of last resort.
A public rail system would directly benefit workers, trackside communities, small shippers, farmers, passengers, and the environment.
Norfolk Southern began planning the vent and burn shortly after the derailment, rejecting three other removal methods that could have been far less dangerous to responders and the people of East Palestine.
While there may be some temptation to view the catastrophic derailment in East Palestine as an unfortunate fluke, the truth is that disastrous events are predictable features of the American rail system.
Under the private ownership of the Class I railroads, we have seen time and again the callous prioritization of profit over people. For the sake of short-term profit, inspections are cut short, tracks and equipment are not maintained, and the rail workforce is gutted — features of an industrial system that calculates derailments as part of the cost of doing business.
The Class I railroads’ — the largest domestic rail carriers — pursuit of short-term profit has led to critical understaffing, longer trains, diminished maintenance of tracks and equipment, inadequate inspections, and other underinvestments that leave rail workers and trackside communities vulnerable to derailments and disasters.
The Class I railroad robber barons are perfectly willing to risk the lives of workers and people living in trackside communities so long as it means more money for them and their shareholders. This is not hyperbole.
Between 2013 and 2022, the rate of rail accidents rose 28 percent as a result of the implementation of Precision Scheduled Railroading (PSR). In short, the philosophy of PSR can be summed up as “speed over safety.” Since 2015, over 50,000 railroad workers — nearly 30 percent of the rail workforce — have been laid off. The workers who remain on the railroads experience chronic fatigue as a result of unpredictable schedules and critical understaffing.
Last spring, it was reported that Union Pacific, one of the six Class I rail carriers, undermined government safety assessments and retaliated against workers who reported rail car flaws. In 2023, the FRA found that 73% of Union Pacific locomotives have federal defects.
According to the NTSB, Norfolk Southern interfered with the East Palestine investigation and abused its status as a party to the probe. NTSB Chair Jennifer Homendy revealed that she was threatened by Norfolk Southern during a private exchange with a senior company executive two weeks prior to the NTSB East Palestine board meeting.
These are but a few examples of the criminality and nefariousness that characterize the privately owned rail system. What’s more, even if one puts aside moral questions regarding the behavior of the Class I railroads, one finds an industry being strangled to death by a get-rich-quick scheme that victimizes workers and trackside communities, cheats small shippers, and — because the rail robber barons are completely allergic to capital expenditure —dooms the US rail system to degradation and ossification.
Another concern is how the American rail system is regulated. While the FRA is ostensibly tasked with overseeing and regulating US railroads, this arrangement becomes murky when one considers the significant degree of industry influence.
The Association of American Railroads (AAR), the industry group representing the interests of North America’s major rail corporations, sets its own safety standards and works closely with the FRA, effectively as an independent regulatory body. AAR even manages the FRA’s Transportation Technology Center through its wholly-owned subsidiary, Transportation Technology Center, Inc.
In the NTSB investigation of the East Palestine derailment, AAR’s standards for hot bearing alerts and alarms came under scrutiny, as they served as the guide for Norfolk Southern’s own criteria that contributed to the disaster. It is worth noting that under the Trump presidency, railroad industry executive Ronald Batory was made FRA administrator, further blurring the line between government regulator and regulated industry.
With the foxes running the henhouse, simple demands for more and better regulation of the railroad industry are inadequate. The real solution, advocated by Railroad Workers United (RWU) and allied organizations across the country, is public ownership of the railroads.
Last spring, RWU launched the Public Rail Ownership (PRO) campaign, building a diverse coalition including rank-and-file unionists, environmentalists, progressives, community activists, and others calling for a rail system that operates in the public interest.
The campaign has hosted webinars, published scholarly works such as Maddock Thomas’s “Putting America Back on Track: The Case for a 21st Century Public Rail System,” and attended union conferences to make its case.
What a publicly owned and operated rail system in the United States will look like has yet to be determined, but there are models that can serve as guides.
The task at hand is massive, and the road ahead is fraught with challenges. However, there is little hope for any improvement of the US rail system so long as it remains in the hands of the irresponsible and unaccountable Class I robber barons.
The rail system in the US is, compared to other countries, an anomaly in that it is predominantly owned by private companies. This was not always the case, and there’s inspiration to be found in US history for the development of a 21st century public rail system.
During World War I, the US rail system was nationalized amid a consensus that the private rail system was unable to serve the needs of the country during wartime. Under the control of the US Railroad Administration (USRA), the railroads operated far more efficiently and effectively than they had under private ownership.
Working conditions and service improved drastically, winning the support of workers, shippers, and much of the public. The nationalized rail system was so popular among rail workers that in a 1918 American Federation of Labor-sponsored referendum, the vote to keep the nation’s railroads in public hands was overwhelmingly in favor: 306,720 to 1,466.
A public rail system would directly benefit workers, trackside communities, small shippers, farmers, passengers, and the environment. The Class I carriers have made it clear that they have no intent to expand rail, or take the crucial step towards full catenary electrification.
Under public ownership, the fetters of the short-term profit motive would be cast off the rail system, opening the door to large-scale infrastructure modernization and expansion projects, creating jobs in construction and spurring economic development in neglected areas of the country. A publicly owned and operated rail system would also create thousands of railroad jobs, as the stripped-to-the-bone PSR model advocated by the Class I carriers would be destined for the dustbin.
The task at hand is massive, and the road ahead is fraught with challenges. However, there is little hope for any improvement of the US rail system so long as it remains in the hands of the irresponsible and unaccountable Class I robber barons. RWU and its allies invite all organizations and individuals to get involved in the Public Rail Ownership campaign, and help make public rail a reality. For more information, please visit publicrailnow.org.
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'Reprehensible': NTSB Chair Says Norfolk Southern Interfered With East Palestine Probe
The NTSB chair said the company tried to "manufacture" evidence, avoided sharing information, and threatened agency staff as she released findings from a 17-month investigation into the East Palestine disaster.
Jun 26, 2024
The chair of the National Transportation Safety Board on Tuesday condemned Norfolk Southern for interfering with its investigation into last year's East Palestine train crash and the "vent and burn" of harmful chemicals that followed.
The remarks came at the final NTSB hearing on the disaster, in which the agency released a preliminary report—damning to Norfolk Southern and its contractors—from a 17-month investigation. NTSB officials explained that a decision to intentionally burn vinyl chloride, a carcinogen, from five derailed train cars was flawed and resulted from the company's selective sharing of information with officials at the time.
Norfolk Southern's uncooperative approach didn't stop after the vent-and-burn, according to the NTSB. Throughout the investigation, the company delayed or avoided sharing information, sought to "manufacture" evidence, and even issued a "threat" to agency staff, Jennifer Homendy, the NTSB chair, said.
"Norfolk Southern's abuse of the party process was unprecedented and reprehensible," Homendy said, also describing it as "unconscionable."
She praised NTSB investigators "for their fortitude in the face of mounting pressure, for their laser focus on the facts."
Why is this so predictable? The head of the NTSB said Norfolk Southern repeatedly tried to interfere with the agency’s investigation into the East Palestine derailment. Oh, and the venting and burning of the chemicals was unnecessary and they failed to disclose it, too.
“Norfolk… pic.twitter.com/BrKYD0Cm6s
— Truthstream Media (@truthstreamnews) June 26, 2024
Dozens of train cars derailed in East Palestine, Ohio, a village near the Pennsylvania border, on February 3, 2023. Hazardous materials were released when a DOT-111 model of train car—not ideal for carrying hazardous materials—was punctured during the crash. This set off fires that spread more than 1,000 feet and lasted for days.
On February 6, concerned that there would be a large-scale explosion, the company got official approval to breach five train cars carrying the vinyl chloride, drained it into a trench, and set it alight in a controlled burn.
That vent-and-burn was "not necessary," says the NTSB's new report, which is set to be finalized in the coming weeks. Homendy had previously said as much while testifying to a congressional committee in March, and a former Environmental Protection Agency employee also said that the incineration likely went against federal regulations, as Common Dreams reported in March.
The burning of the vinyl chloride left a chemical odor over the town, and may have been the cause of nausea, rashes, and headaches. And its impact was not limited to East Palestine—the burned chemicals spread to 16 states and likely Canada, a study released last week found.
Tuesday's hearing helped clarify why the flawed decision to burn the vinyl chloride was made: Norfolk Southern didn't share all available information with authorities, and pressured them to approve the burn immediately.
Oxy Vinyls, the company that produced the chemical, had already assessed the situation and determined that a feared chemical reaction that could have led to an explosion wasn't happening, but Norfolk Southern didn't share this with the incident commander, the report says. The East Palestine fire chief has said the company gave him only 13 minutes to approve the burn; the new report cites "unwarranted urgency."
Norfolk Southern presented vent-and-burn as the only option, the report says.
"There was another option: Let it cool down," Homendy said previously.
In fact, the temperature of one of the train cars in question was already going down, indicating that the feared chemical reaction wasn't happening, but Norfolk Southern didn't share this fact with authorities, the report says.
The company's lack of transparency began even earlier: Firefighters and emergency personnel weren't told which hazardous materials were on board until an hour after they arrived.
"This resulted in greater exposure of emergency responders and to the public to post-derailment hazards," said NTSB investigator Troy Lloyd.
When a responder called Norfolk Southern to ask for more information about the materials on board, a company representative said they would call back, but never did, The Washington Post reported.
Krissy Ferguson, a 50-year-old local resident, told the Post that she felt "heartbroken" after the hearing and called for criminal charges to be filed.
Other local people expressed similar discontent with the company after the hearing.
"Community members deserve transparency and proactive protection, not the silence, secrecy, and manipulation that has been unveiled today about Norfolk Southern," East Palestine resident Misti Allison told The Associated Press.
Homendy expressed her own discontent with Norfolk Southern's approach to dealing with her agency. She said that a senior executive had requested that the agency "put to bed" the "rumor" that the company had rushed through the vent-and-burn to keep trains moving and had said that the results of the agency's investigation could "close a chapter" for the company and allow it to "move on."
Homendy said the request was not only "unethical and inappropriate," but also that the entire room full of NTSB staff perceived it as a "threat," as "it was delivered that way."
The alleged intimidation didn't have apparent effect. In addition to its findings about the accident and the burn, the NTSB on Tuesday set forth more than two dozen recommendations for stricter safety regulations, one of which is removing the DOT-111 model of train car from flammable liquids service.
The recommendations are not binding and must be enacted by Congress, which failed to pass a proposed package of railroad reforms last year likely due to industry lobbying and Republican resistance. The Biden administration did institute new regulations in April.
Norfolk Southern issued a statement in response to the NTSB's findings.
"We resolved not to wait for the NTSB's final report before taking decisive action," said John Fleps, the company's chief safety officer. "We will continue to build on our strong safety culture through partnership and innovation to be the gold standard of safety for the rail industry."
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