Most people live in urban areas and as more people move around the urban areas, they tend to get crowded, or congestion begins. 50 years ago, the thought was to build new highways and that would solve the problem. The issue is it does for the first few years, but soon the new highways are congested, and the road system thoughts begin again. Ideally there is a mixture between transit and the road system which allows people soon level of choice. There are advantages and disadvantages to taking the car and riding transit for the individual and society at large. One suggestion that seems to successful in London, England is to bring in congestion pricing system on vehicles. This solution tends to send more people to transit either subway or the commuting train system.

In an article written by Philip Marcelo of the Associated Press, the city of New York has imposed a congestion price on vehicles through a $9 toll if the car enters Manhattan neighborhoods south of Central Park. The city says city traffic has brought modest but measurable traffic reductions.

When governments get elected, they often know what they do not like. The Trump administration through the US Transportation Secretary Sean Duffy will work to stop the tolls.

The other side of the issue is the state government through the Metropolitan Transportation Authority which runs the New York subway and other public transit. The MTA had plans to use the money from the tolls to issue bonds that would fund billions of dollars in improvements and repairs to the city’s creaky and cash strapped transit system which carries 4 million riders daily.

Who funds the transit system when all governments are cutting back expenditures?

Linking to dividend paying stocks, when governments are in place during the first 100 days, they often know what they do not want, but not necessarily what they do want. After 100 days, it will be their job to find solutions, because they are now responsible. There are always tradeoffs in government policies, and it is up to the private sector to find the opportunities in the tradeoffs. After the 100 days, the administration should signal what it does like and what kind of regulations it will or will not impose and then companies can try to work within the system until the next election. For dividend paying stocks, the ideal is to work beyond the election cycle to see the opportunities that will allow to continue making profits to pay dividends.

There are more questions than answers, till the next time – to raising questions.