Elon Musk Pushes to Privatize Amtrak and Postal Service

Elon Musk, advising President Trump, criticized Amtrak Wednesday. He demanded privatization for both Amtrak and the U.S. Postal Service immediately. This is reported by the railway transport news portal Railway Supply, citing a source.

Musk argued for privatizing anything feasible, including the Post Office and rail services. “We should privatize everything we possibly can because it makes logical sense,” he declared confidently.

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He acknowledged that Congress would need to approve these bold privatization moves. Meanwhile, Trump recently considered merging the Postal Service with the Commerce Department.

The Postal Service has struggled, losing over $100 billion since 2007, data shows. Yet, it earned a surprising $144 million profit in the last quarter reported.

Email growth has slashed first-class mail volume by 80% since 1997, records indicate. Consequently, mail volume now sits at its lowest point since 1968, officials confirm.

USPS officials chose not to comment on Musk’s privatization proposal Wednesday. However, Amtrak proudly highlighted its record-breaking ridership numbers for 2024.

Amtrak Sets Ridership Records Amid Losses

Amtrak’s ridership soared 15% above 2023, reaching 32.8 million trips, surpassing 2019. Still, it reported a $705 million operating loss, down 9% from last year.

Musk criticized the rail operator, comparing it to China’s advanced high-speed rail system. “It leaves a bad impression of America because it’s a sad situation,” he remarked.

The rail operator countered Musk’s critique, emphasizing its strong business performance growing. “Our nationwide train service aims for profitability soon,” the company stated optimistically.

In March, the rail service expanded East Coast routes to boost ridership by 2040. It targets doubling its passengers to 66 million annually, a spokesperson revealed.

Amtrak Funding Sparks Debate

Congress allocated $66 billion for rail projects in a 2021 infrastructure bill, records show. Of that, the rail operator received $22 billion over five years, plus funding.

During his first term, Trump repeatedly pushed to slash federal rail funding significantly. Last year, the rail service secured about $2.4 billion in federal support, documents confirm.

Musk’s privatization stance has sparked debate among lawmakers and industry leaders alike. For now, both agencies continue operating under their current government structures unchanged.

Supporters argue privatization could streamline operations and cut costs for taxpayers effectively. Critics, however, warn it might compromise service quality and accessibility nationwide.

The Postal Service’s recent profit offers hope amid its long-term financial struggles. Similarly, rail ridership gains signal potential for growth despite ongoing losses yearly.

Experts predict Congress will closely scrutinize Musk’s proposals in upcoming sessions soon. And so, the future of these iconic American institutions remains uncertain for now.

Source: www.aol.com

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