132-568: Amtrak Express is Amtrak 's freight and shipping service. It handles small package express service, heavy freight shipments and city-to-city freight shipping by private and commercial customers. Boxes up to 36" x 36" x 36" (maximum 50 pounds), suitcases, and boxed bicycles are acceptable, but numerous classes of fragile, valuable and hazardous items are not permitted. Large pallet shipments of up to 500 pounds (227 kg) are accepted at certain major stations. Quoted transit times range from 2 to 7 days depending on distance and service frequency. Service
264-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,
396-553: A quasi-public corporation to operate many U.S. passenger rail routes, Amtrak receives a combination of state and federal subsidies but is managed as a for-profit organization . The company's headquarters is located one block west of Union Station in Washington, D.C. Amtrak is headed by a Board of Directors, two of whom are the Secretary of Transportation and CEO of Amtrak, while the other eight members are nominated to serve
528-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around
660-718: A "transitional CEO" who would reorganize Amtrak before turning it over to new leadership. On November 17, 2016, the Gateway Program Development Corporation (GDC) was formed for the purpose of overseeing and effectuating the rail infrastructure improvements known as the Gateway Program. GDC is a partnership of the States of New York and New Jersey and Amtrak. The Gateway Program includes the Hudson Tunnel Project, to build
792-593: A crisis in the 1960s. Passenger service route-miles fell from 107,000 miles (172,000 km) in 1958 to 49,000 miles (79,000 km) in 1970, the last full year of private operation. The diversion of most United States Post Office Department mail from passenger trains to trucks, airplanes, and freight trains in late 1967 deprived those trains of badly needed revenue. In direct response, the Atchison, Topeka and Santa Fe Railway filed to discontinue 33 of its remaining 39 trains, ending almost all passenger service on one of
924-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to
1056-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to
1188-766: A head on June 21, 1970, when the Penn Central , the largest railroad in the Northeastern United States and teetering on bankruptcy, filed to discontinue 34 of its passenger trains. In October 1970, Congress passed, and President Richard Nixon signed into law (against the objections of most of his advisors), the Rail Passenger Service Act. Proponents of the bill, led by the National Association of Railroad Passengers (NARP), sought government funding to ensure
1320-577: A large overhang of debt from years of underfunding. In the mid-1990s, Amtrak suffered through a serious cash crunch. Under Downs, Congress included a provision in the Taxpayer Relief Act of 1997 that resulted in Amtrak receiving a $ 2.3 billion tax refund that resolved their cash crisis. However, Congress also instituted a "glide path" to financial self-sufficiency, excluding railroad retirement tax act payments. George Warrington became
1452-429: A massive 94 billion passenger-miles. After the war, railroads rejuvenated their overworked and neglected passenger fleets with fast and luxurious streamliners. These new trains brought only temporary relief to the overall decline. Even as postwar travel exploded, passenger travel percentages of the overall market share fell to 46% by 1950, and then 32% by 1957. The railroads had lost money on passenger service since
SECTION 10
#17327724309291584-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside
1716-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and
1848-634: A new tunnel under the Hudson River and rehabilitate the existing century-old tunnel, and the Portal North Bridge, to replace a century-old moveable bridge with a modern structure that is less prone to failure. Later projects of the Gateway Program, including the expansion of track and platforms at Penn Station New York, construction of the Bergen Loop and other improvements will roughly double capacity for Amtrak and NJ Transit trains in
1980-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In
2112-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of
2244-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to
2376-485: A term of five years. Amtrak's network includes over 500 stations along 21,400 miles (34,000 km) of track. It directly owns approximately 623 miles (1,003 km) of this track and operates an additional 132 miles of track; the remaining mileage is over rail lines owned by other railroad companies. While most track speeds are limited to 79 mph (127 km/h) or less, several lines have been upgraded to support top speeds of 110 mph (180 km/h), and parts of
2508-567: A year, its highest number since its founding in 1970. Politico noted a key problem: "the rail system chronically operates in the red. A pattern has emerged: Congress overrides cutbacks demanded by the White House and appropriates enough funds to keep Amtrak from plunging into insolvency. But, Amtrak advocates say, that is not enough to fix the system's woes." Joseph H. Boardman replaced Kummant as president and CEO in late 2008. In 2011, Amtrak announced its intention to improve and expand
2640-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation
2772-460: Is available between most Amtrak stations that handle checked baggage (over 130 cities). Service and hours vary widely by station, limited by available equipment and security considerations, and service is not available on all days at all stations. The following prohibited items are not acceptable for shipment under any circumstances: Amtrak accepts human remains at many stations that handle Amtrak Express. Undertakers must make prior arrangements with
SECTION 20
#17327724309292904-616: Is owned by New York's Metropolitan Transportation Authority and the Connecticut Department of Transportation as the New Haven Line .) This mainline became Amtrak's "jewel" asset, and helped the railroad generate revenue. While the NEC ridership and revenues were higher than any other segment of the system, the cost of operating and maintaining the corridor proved to be overwhelming. As a result, Amtrak's federal subsidy
3036-590: Is powered by overhead lines ; for the rest of the system, diesel-fueled locomotives are used. Routes vary widely in the frequency of service, from three-days-a-week trains on the Sunset Limited to several times per hour on the Northeast Corridor. For areas not served by trains, Amtrak Thruway routes provide guaranteed connections to trains via buses, vans, ferries and other modes. The most popular and heavily used services are those running on
3168-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated
3300-461: Is the largest host to Amtrak routes, with 6.3 million train-miles. Freight rail operators are required under federal law to give dispatching preference to Amtrak trains. However, Amtrak has accused freight railroads of violating or skirting these regulations, resulting in passenger trains waiting for freight traffic to clear the track. Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period
3432-763: The California Zephyr between Oakland and Chicago via Denver and revived the Auto Train , a unique service that carries both passengers and their vehicles. Amtrak advertised it as a great way to avoid traffic along the I-95 running between Lorton, Virginia (near Washington, D.C.) and Sanford, Florida (near Orlando) on the Silver Star alignment. In 1980s and 1990s, stations in Baltimore, Chicago, and Washington, D.C. received major rehabilitation and
3564-566: The Pioneer Zephyr were popular with the traveling public but could not reverse the trend. By 1940, railroads held 67 percent of commercial passenger-miles in the United States. In real terms, passenger-miles had fallen by 40% since 1916, from 42 billion to 25 billion. Traffic surged during World War II , which was aided by troop movement and gasoline rationing . The railroad's market share surged to 74% in 1945, with
3696-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that
3828-1018: The COVID-19 pandemic , Amtrak continued operating as an essential service. It started requiring face coverings the week of May 17, and limited sales to 50% of capacity. Most long-distance routes were reduced to three weekly round trips in October 2020. In March 2021, following President Joe Biden's American Jobs Plan announcement, Amtrak CEO Bill Flynn outlined a proposal called Amtrak Connects US that would expand state-supported intercity corridors with an infusion of upfront capital assistance. This would expand service to cities including Las Vegas , Phoenix , Baton Rouge , Nashville , Chattanooga , Louisville , Columbus (Ohio) , Wilmington (North Carolina) , Cheyenne , Montgomery , Concord , and Scranton . Also in March 2021, Amtrak announced plans to return 12 of its long-distance routes to daily schedules later in
3960-483: The Great Depression , but deficits reached $ 723 million in 1957. For many railroads, these losses threatened financial viability. The causes of this decline were heavily debated. The National Highway System and airports , both funded by the government, competed directly with the railroads, which, unlike the airline, bus, and trucking companies, paid for their own infrastructure. American car culture
4092-634: The High Speed Ground Transportation Act of 1965 to fund pilot programs in the Northeast Corridor , but this did nothing to address passenger deficits. In late 1969, multiple proposals emerged in the United States Congress , including equipment subsidies, route subsidies, and, lastly, a "quasi-public corporation" to take over the operation of intercity passenger trains. Matters were brought to
Amtrak Express - Misplaced Pages Continue
4224-658: The Highway Trust Fund and Aviation Trust Fund paid for by user fees, highway fuel and road taxes, and, in the case of the General Fund, from general taxation. Gunn dropped most freight express business and worked to eliminate deferred maintenance. A plan by the Bush administration "to privatize parts of the national passenger rail system and spin off other parts to partial state ownership" provoked disagreement within Amtrak's board of directors. Late in 2005, Gunn
4356-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of
4488-511: The Northeast Corridor support top speeds of 160 mph (260 km/h). In fiscal year 2022, Amtrak served 22.9 million passengers and had $ 2.1 billion in revenue, with more than 17,100 employees as of fiscal year 2021. Nearly 87,000 passengers ride more than 300 Amtrak trains daily. Nearly two-thirds of passengers come from the 10 largest metropolitan areas and 83% of passengers travel on routes shorter than 400 miles (645 km). In 1916, 98% of all commercial intercity travelers in
4620-636: The Railroad Revitalization and Regulatory Reform Act of 1976. A large part of the legislation was directed to the creation of Conrail , but the law also enabled the transfer of the portions of the NEC not already owned by state authorities to Amtrak. Amtrak acquired the majority of the NEC on April 1, 1976. (The portion in Massachusetts is owned by the Commonwealth and managed by Amtrak. The route from New Haven to New Rochelle
4752-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,
4884-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It
5016-520: The Amtrak Express Desk. Amtrak The National Railroad Passenger Corporation , doing business as Amtrak ( / ˈ æ m t r æ k / ; reporting marks AMTK , AMTZ ), is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. states and three Canadian provinces . Amtrak is a portmanteau of the words America and track. Founded in 1971 as
5148-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with
5280-620: The California corridor trains accounted for a combined 2.35 million passengers in fiscal year 2021. Other popular routes include the Empire Service between New York City and Niagara Falls , via Albany and Buffalo , which carried 613.2 thousand passengers in fiscal year 2021, and the Keystone Service between New York City and Harrisburg via Philadelphia that carried 394.3 thousand passengers that same year. Four of
5412-451: The DOT's analysis was far too optimistic, with director George Shultz arguing to cut the number of routes by around half. Nixon agreed with Shultz, and the public draft presented by Volpe on November 30 consisted of only 16 routes. The initial reaction to this heavily-cut-back proposed system from the public, the press, and congressmen was strongly negative. It made front-page headlines across
Amtrak Express - Misplaced Pages Continue
5544-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there
5676-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in
5808-467: The Empire Connection tunnel opened in 1991, allowing Amtrak to consolidate all New York services at Penn Station. Despite the improvements, Amtrak's ridership stagnated at roughly 20 million passengers per year, amid uncertain government aid from 1981 to about 2000. In the early 1990s, Amtrak tested several different high-speed trains from Europe on the Northeast Corridor. An X 2000 train
5940-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit
6072-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There
6204-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade
6336-478: The NEC and rises in automobile fuel costs. The inauguration of the high-speed Acela in late 2000 generated considerable publicity and led to major ridership gains. However, through the late 1990s and very early 21st century, Amtrak could not add sufficient express freight revenue or cut sufficient other expenditures to break even. By 2002, it was clear that Amtrak could not achieve self-sufficiency, but Congress continued to authorize funding and released Amtrak from
6468-642: The NEC, including the Acela and Northeast Regional . The NEC runs between Boston and Washington, D.C. via New York City and Philadelphia. Some services continue into Virginia . The NEC services accounted for 4.4 million of Amtrak's 12.2 million passengers in fiscal year 2021. Outside the NEC the most popular services are the short-haul corridors in California, the Pacific Surfliner , Capitol Corridor , and San Joaquins , which are supplemented by an extensive network of connecting buses. Together
6600-472: The NRPC had hired Lippincott & Margulies to create a brand for it and replace its original working brand name of Railpax. On March 30, L&M's work was presented to the NRPC's board of incorporators, who unanimously agreed on the "headless arrow" logo and on the new brand name "Amtrak", a portmanteau of the words America and trak , the latter itself a sensational spelling of track . The name change
6732-601: The Navy and retired Southern Railway head William Graham Claytor Jr. came out of retirement to lead Amtrak. During his time at Southern, Claytor was a vocal critic of Amtrak's prior managers, who all came from non-railroading backgrounds. Transportation Secretary Drew Lewis cited this criticism as a reason why the Democrat Claytor was acceptable to the Reagan White House. Despite frequent clashes with
SECTION 50
#17327724309296864-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on
6996-697: The Northeast Corridor, some of which connect to it or are extensions from it. In addition to its inter-city services, Amtrak also operates commuter services under contract for three public agencies: the MARC Penn Line in Maryland, Shore Line East in Connecticut, and Metrolink in Southern California. Service on the Northeast Corridor (NEC), between Boston , and Washington, D.C. , as well as between Philadelphia and Harrisburg ,
7128-565: The Northeast Corridor, state-supported short-haul service outside the Northeast Corridor, and medium- and long-haul service known within Amtrak as the National Network. Amtrak receives federal funding for the vast majority of its operations including the central spine of the Northeast Corridor as well as for its National Network routes. In addition to the federally funded routes, Amtrak partners with transportation agencies in 18 states to operate other short and medium-haul routes outside of
7260-406: The November 30th draft. These required routes only had their endpoints specified; the selection of the actual routes to be taken between the endpoints was left to the NRPC, which had just three months to decide them before it was due to start service. Consultants from McKinsey & Company were hired to perform this task, and their results were publicly announced on March 22. At the same time,
7392-908: The President and Congress to give passenger trains a "last hurrah" as demanded by the public. They expected the NRPC to quietly disappear as public interest waned. After Fortune magazine exposed the manufactured mismanagement in 1974, Louis W. Menk , chairman of the Burlington Northern Railroad , remarked that the story was undermining the scheme to dismantle Amtrak. Proponents also hoped that government intervention would be brief and that Amtrak would soon be able to support itself. Neither view had proved to be correct; popular support allowed Amtrak to continue in operation longer than critics imagined, while financial results made passenger train service returning to private railroad operations infeasible. The Rail Passenger Service Act gave
7524-612: The Reagan administration over funding, Claytor enjoyed a good relationship with Lewis, John H. Riley , the head of the Federal Railroad Administration (FRA), and with members of Congress. Limited funding led Claytor to use short-term debt to fund operations. Building on mechanical developments in the 1970s, high-speed Washington–New York Metroliner Service was improved with new equipment and faster schedules. Travel time between New York and Washington, D.C.
7656-458: The Secretary of Transportation, at that time John A. Volpe , thirty days to produce an initial draft of the endpoints of the routes the NRPC would be required by law to serve for four years. On November 24 Volpe presented his initial draft consisting of 27 routes to Nixon, which he believed would make a $ 24 million profit by 1975. The Office of Management and Budget , however, believed Volpe and
7788-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This
7920-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending
8052-438: The United States moved by rail, and the remaining 2% moved by inland waterways . Nearly 42 million passengers used railways as primary transportation. Passenger trains were owned and operated by the same privately owned companies that operated freight trains. As the 20th century progressed, patronage declined in the face of competition from buses , air travel , and the car . New streamlined diesel-powered trains such as
SECTION 60
#17327724309298184-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in
8316-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had
8448-638: The Wall Street crash, after which the slide continued for three years, which was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in
8580-403: The White House and more conservative members of Congress to support the bill. There were several key provisions: Of the 26 railroads still offering intercity passenger service in 1970, only six declined to join the NRPC. Nearly everyone involved expected the experiment to be short-lived. The Nixon administration and many Washington insiders viewed the NRPC as a politically expedient way for
8712-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why
8844-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate
8976-433: The busiest, most complex section of the Northeast Corridor. In June 2017, it was announced that former Delta and Northwest Airlines CEO Richard Anderson would become Amtrak's next President & CEO. Anderson began the job on July 12, assuming the title of President immediately and serving alongside Moorman as "co-CEOs" until the end of the year. On April 15, 2020, Atlas Air Chairman, President and CEO William Flynn
9108-410: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which
9240-412: The continuation of passenger trains. They conceived the National Railroad Passenger Corporation (NRPC), a quasi-public corporation that would be managed as a for-profit organization , but which would receive taxpayer funding and assume operation of intercity passenger trains – while many involved in drafting the bill did not believe the NRPC would actually be profitable, this was necessary in order for
9372-434: The corridor to make it suitable for higher-speed electric trains. The Northend Electrification Project extended existing electrification from New Haven, Connecticut , to Boston to complete the overhead power supply along the 454-mile (731 km) route, and several grade crossings were improved or removed. Ridership increased during the first decade of the 21st century after the implementation of capital improvements in
9504-477: The country and it was quickly leaked that the DOT had wanted a far larger system than the White House would approve of. The ICC produced its own report on December 29, criticising the proposed draft and arguing for the inclusion of fifteen additional routes, giving further ammunition to the congressmen who wanted an expanded system. Further wrangling between the DOT and the White House produced the final list of routes on January 28, 1971, adding five additional routes to
9636-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by
9768-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what
9900-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered
10032-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and
10164-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did
10296-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of
10428-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought
10560-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though
10692-480: The ex- New York Central Railroad 's Water Level Route from New York to Ohio and Grand Trunk Western Railroad 's Chicago to Detroit route. The reduced passenger train schedules created confusion amongst staff. At some stations, Amtrak service was available only late at night or early in the morning, prompting complaints from passengers. Disputes with freight railroads over track usage caused some services to be rerouted, temporarily cancelled, or replaced with buses. On
10824-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating
10956-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be
11088-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August
11220-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing
11352-624: The high-speed rail corridor from Penn Station in NYC, under the Hudson River in new tunnels, and double-tracking the line to Newark, NJ , called the Gateway Program , initially estimated to cost $ 13.5 billion (equal to $ 18 billion in 2023). From May 2011 to May 2012, Amtrak celebrated its 40th anniversary with festivities across the country that started on National Train Day (May 7, 2011). A commemorative book entitled Amtrak: An American Story
11484-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,
11616-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at
11748-644: The job, he is the second-longest serving head of Amtrak since it was formed more than 40 years ago. On December 9, 2015, Boardman announced in a letter to employees that he would be leaving Amtrak in September 2016. He had advised the Amtrak Board of Directors of his decision the previous week. On August 19, 2016, the Amtrak Board of Directors named former Norfolk Southern Railway President & CEO Charles "Wick" Moorman as Boardman's successor with an effective date of September 1, 2016. During his term, Moorman took no salary and said that he saw his role as one of
11880-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with
12012-449: The largest railroads in the country. The equipment the railroads had ordered after World War II was now 20 years old, worn out, and in need of replacement. As passenger service declined, various proposals were brought forward to rescue it. The 1961 Doyle Report proposed that the private railroads pool their services into a single body. Similar proposals were made in 1965 and 1968 but failed to attract support. The federal government passed
12144-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,
12276-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then
12408-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view
12540-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and
12672-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that
12804-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In
12936-607: The other hand, the creation of the Los Angeles–Seattle Coast Starlight from three formerly separate train routes was an immediate success, resulting in an increase to daily service by 1973. Needing to operate only half the train routes that had operated previously, Amtrak would lease around 1,200 of the best passenger cars from the 3,000 that the private railroads owned. All were air-conditioned, and 90% were easy-to-maintain stainless steel. When Amtrak took over, passenger cars and locomotives initially retained
13068-433: The paint schemes and logos of their former owners which resulted in Amtrak running trains with mismatched colors – the "Rainbow Era". In mid-1971, Amtrak began purchasing some of the equipment it had leased, including 286 EMD E and F unit diesel locomotives, 30 GG1 electric locomotives and 1,290 passenger cars. By 1975, the official Amtrak color scheme was painted on most Amtrak equipment and newly purchased locomotives and
13200-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during
13332-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in
13464-459: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in
13596-443: The requirement. In early 2002, David L. Gunn replaced Warrington as seventh president. In a departure from his predecessors' promises to make Amtrak self-sufficient in the short term, Gunn argued that no form of passenger transportation in the United States is self-sufficient as the economy is currently structured. Highways, airports, and air traffic control all require large government expenditures to build and operate, coming from
13728-532: The rolling stock began appearing. Amtrak inherited problems with train stations (most notably deferred maintenance ) and redundant facilities from the competing railroads that once served the same communities. Chicago is a prime example; on the day prior to Amtrak's inception, intercity passenger trains used four different Chicago terminals: LaSalle , Dearborn , North Western Station , Central , and Union. The trains at LaSalle remained there, as their operator Rock Island could not afford to opt into Amtrak. Of all
13860-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of
13992-406: The schedule. Amtrak uses a sliding scale, with trips under 250 miles (400 km) considered late if they are more than 10 minutes behind schedule, up to 30 minutes for trips over 551 miles (887 km) in length. Outside the Northeast Corridor and stretches of track in Southern California and Michigan, most Amtrak trains run on tracks owned and operated by privately owned freight railroads. BNSF
14124-519: The six busiest stations by boardings are on the NEC: New York Penn Station (first), Washington Union Station (second), Philadelphia 30th Street Station (third), and Boston South Station (fifth). The other two are Chicago Union Station (fourth) and Los Angeles Union Station (sixth). On-time performance is calculated differently for airlines than for Amtrak. A plane is considered on-time if it arrives within 15 minutes of
14256-505: The sixth president in 1998, with a mandate to make Amtrak financially self-sufficient. Under Warrington, the company tried to expand into express freight shipping, placing Amtrak in competition with the "host" freight railroads and the trucking industry . On March 9, 1999, Amtrak unveiled its plan for the Acela Express, a high-speed train on the Northeast Corridor between Washington, D.C. and Boston. Several changes were made to
14388-775: The spring. Most of these routes were restored to daily service in late-May 2021. However, a resurgence of the virus caused by the Omicron variant caused Amtrak to modify and/or suspend many of these routes again from January to March 2022. Amtrak is required by law to operate a national route system. Amtrak has presence in 46 of the 48 contiguous states, as well as the District of Columbia (with only thruway connecting services in Wyoming and no services in South Dakota ). Amtrak services fall into three groups: short-haul service on
14520-431: The system with an aim to reduce costs, speed construction, and improve its corporate image. However, the cash-strapped railroad would ultimately build relatively few of these standard stations. Amtrak soon had the opportunity to acquire rights-of-way. Following the bankruptcy of several northeastern railroads in the early 1970s, including Penn Central, which owned and operated the Northeast Corridor (NEC), Congress passed
14652-636: The trains serving Dearborn Station, Amtrak retained only a pair of Santa Fe trains, which relocated to Union Station beginning with the first Amtrak departures on May 1, 1971. Dearborn Station closed after the last pre-Amtrak trains on the Santa Fe arrived in Chicago on May 2. None of the intercity trains that had served North Western Station became part of the Amtrak system, and that terminal became commuter-only after May 1. The trains serving Central Station continued to use that station until an alternate routing
14784-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and
14916-673: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in
15048-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among
15180-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject
15312-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did
15444-467: Was adopted in March 1972. In New York City , Amtrak had to maintain two stations ( Penn and Grand Central ) due to the lack of track connections to bring trains from upstate New York into Penn Station; a problem that was rectified once the Empire Connection was built in 1991. The Amtrak Standard Stations Program was launched in 1978 and proposed to build a standardized station design across
15576-402: Was also on the rise in the post-World War II years. Progressive Era rate regulation limited the railroad's ability to turn a profit. Railroads also faced antiquated work rules and inflexible relationships with trade unions. To take one example, workers continued to receive a day's pay for 100-to-150-mile (160 to 240 km) workdays. Streamliners covered that in two hours. Matters approached
15708-485: Was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression
15840-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of
15972-609: Was fired. Gunn's replacement, Alexander Kummant (2006–08), was committed to operating a national rail network, and like Gunn, opposed the notion of putting the Northeast Corridor under separate ownership. He said that shedding the system's long-distance routes would amount to selling national assets that are on par with national parks, and that Amtrak's abandonment of these routes would be irreversible. In late 2006, Amtrak unsuccessfully sought annual congressional funding of $ 1 billion for ten years. In early 2007, Amtrak employed 20,000 people in 46 states and served 25 million passengers
16104-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing
16236-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by
16368-803: Was increased dramatically. In subsequent years, other short route segments not needed for freight operations were transferred to Amtrak. In its first decade, Amtrak fell far short of financial independence, which continues today, but it did find modest success rebuilding trade. Outside factors discouraged competing transport, such as fuel shortages which increased costs of automobile and airline travel, and strikes which disrupted airline operations. Investments in Amtrak's track, equipment and information also made Amtrak more relevant to America's transportation needs. Amtrak's ridership increased from 16.6 million in 1972 to 21 million in 1981. In February 1978, Amtrak moved its headquarters to 400 North Capitol Street NW, Washington D.C. In 1982, former Secretary of
16500-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened
16632-650: Was leased from Sweden for test runs from October 1992 to January 1993, followed by revenue service between Washington, D.C. and New York City from February to May and August to September 1993. Siemens showed the ICE 1 train from Germany, organizing the ICE Train North America Tour which started to operate on the Northeast Corridor on July 3, 1993. In 1993, Thomas Downs succeeded Claytor as Amtrak's fifth president. The stated goal remained "operational self-sufficiency". By this time, however, Amtrak had
16764-548: Was named Amtrak President and CEO. In addition to Atlas Air, Flynn has held senior roles at CSX Transportation , SeaLand Services and GeoLogistics Corp. Anderson would remain with Amtrak as a senior advisor until December 2020. As Amtrak approached profitability in 2020, the company undertook planning to expand and create new intermediate-distance corridors across the country. Included were several new services in Ohio, Tennessee, Colorado, and Minnesota, among other states. During
16896-523: Was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on the stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until
17028-445: Was publicly announced less than two weeks before operations began. Amtrak began operations on May 1, 1971. Amtrak received no rail tracks or rights-of-way at its inception. All of Amtrak's routes were continuations of prior service, although Amtrak pruned about half the passenger rail network. Of the 366 train routes that operated previously, Amtrak continued only 184. Several major corridors became freight-only, including
17160-452: Was published, a documentary was created, six locomotives were painted in Amtrak's four prior paint schemes , and an Exhibit Train toured the country visiting 45 communities and welcoming more than 85,000 visitors. After years of almost revolving-door CEOs at Amtrak, in December 2013, Boardman was named "Railroader of the Year" by Railway Age magazine, which noted that with over five years in
17292-462: Was reduced to under 3 hours due to system improvements and limited stop service. This improvement was cited as a reason why Amtrak grew its share of intercity trips between the cities along the corridor. Elsewhere in the country, demand for passenger rail service resulted in the creation of five new state-supported routes in California, Illinois, Missouri, Oregon and Pennsylvania, for a total of 15 state-supported routes. Amtrak added two trains in 1983,
17424-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that
#928071