Quote:
Originally Posted by mr1138
Actually, we have been discussing the cost escalation of CAHSR and how this cost escalation was, in large part, caused by inflation. This is not an "out of state political discussion." Inflation, and what caused it, has EVERYTHING to do with CAHSR. I find reading this discussion interesting and productive and would prefer not to see it stomped out just because some people think politics can be kept separate from discussions about how public infrastructure spending (news flash - everything about this is political).
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A quick Google search indicates that while overall inflation since 2008 is roughly 50% (meaning a $33 billion project ought to be roughly $50 billion), concrete prices have
tripled during that same time. This single-handedly explains much of the cost increase.
Also, getting back to the Made-in-USA requirement, it might be the case that steel rail prices have not inflated internationally (I could not find a statistic), but the cost to buy even 50% of the rail
domestically might be much, much higher.
I have personal knowledge of a streetcar project with Made-in-USA mandates that resulted in them laying much heavier and expensive rail than the streetcars require.
Sometimes prices unexpectedly crash. If this project had been approved in 2004, they would have gotten to the construction phase just as the 2008 collapse commenced. They would have been able to get far cheaper labor and materials. For example, I just looked up steel fencing costs and apparently fencing costs crashed 75% during that recession. Almost every mile of construction in the Central Valley will require two miles of very high-quality fencing. If you've ever gotten a quote on fencing for your house, you would know that fencing alone might comprise hundreds of millions of dollars or even a billion of CAHSR's budget.
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