Tech mogul Elon Musk expressed his support for privatizing the US national rail system and postal service at a recent conference. He believes that companies should be allowed to fail, as this allows for feedback loops to improve their services.
Musk criticized Amtrak, calling it “embarrassing”, due to its net losses of millions annually. The agency relies on federal subsidies to stay afloat. In contrast, the US Postal Service is largely self-funded through fees collected from users, but still receives government funding.
The proposed privatization of these two entities comes as President Joe Biden has been working to improve Amtrak services, including adding new routes and extending service to more communities. Despite efforts to bolster the agency, it remains dependent on federal grants.
Source: https://www.scrippsnews.com/politics/president-trumps-first-100-days/musk-calls-amtrak-embarrassing-and-pushes-for-privatization-of-federal-agencies