THE DEMAND IS INSUFFICIENTLY INELASTIC.

Transportation companies that cut costs by cutting service find themselves on the track to liquidation.

That goes for Chicago area Commuter Rail operator Metra.  "The commuter railroad has raised fares six times in the last seven years and has seen declines in ridership."

They're pinning their hopes on a new transportation appropriation from Springfield, the first in going on ten years.

“Clearly, there’s a lot of need out there,” said Metra CEO Jim Derwinski. He said the agency could use $5 billion in the next five to seven years to buy new locomotives and coaches, upgrade stations, add express trains, repair bridges, electrify the Rock Island Line and improve service to O’Hare International Airport.

Addressing the inaction by state legislators, board member Ken Koehler of Crystal Lake said he would vote to shut down the railroad for a couple of days and send all workers to Springfield.

“We have to show them the benefits we bring to the riding public,” Koehler said.

Metra officials projected a need for more passenger revenue in future budget years — from $371 million expected in 2019 to $402 million in 2020 and $421 million in 2021. Since ridership has been decreasing, such an increase would have to come from fare increases, if the board were to approve them.

Yes, although increasing fares means further decreases in ridership.

We have much to look forward to.