A shocking story of government inefficiency: Amtrak lost $800M on cheeseburgers and soda

Taxpayers lost $833 million over the last decade on the food and
beverages supplied by Amtrak, which managed to spend $1.70 for every
dollar that received in revenue.






“Over the last ten years, these losses have amounted to a staggering
$833.8 million,” said Rep.John Mica, R-Fla., in a statement previewing a
House hearing today. “It costs passengers $9.50 to buy a cheeseburger
on Amtrak, but the cost to taxpayers is $16.15. Riders pay $2.00 for a
Pepsi, but each of these sodas costs the U.S. Treasury $3.40.”



Amazon.com is currently selling 24-packs of 12 ounce Pepsi cans for $8.94 -- which averages to about 75 cents per can.



Amtrak President Joe Boardman tried encourage House investigators by
telling them that last year's losses represent an improvement over
previous years. "Our ongoing programs have certainly delivered
measurable financial efficiencies," Boardman told Congress in his
written testimony today. "In 2006, our food and beverage service
recovered 49 percent of their costs. In 2011, these services recovered
59 percent of their costs," he testified.



The food service is legally obligated to break even, but Amtrak lost $84
million just last year. “The rail service’s food and beverage operation
has 1,234 employees, and taking into account Amtrak’s $84.5 million
loss last year, that’s $68, 476 per employee," Mica said.

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Farnsworth take:

won't healthcare be a real money saver when it's ran by the government?
I guess with Obama pushing high speed rail, we can get to inefficiency much quicker.