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Amtrak’s ridership is touching record highs

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At 7pm on a Friday night, the Illini service, a train that runs from southern Illinois to Chicago, ought to be pulling into the college city of Champaign. When your correspondent was on it in early March, it stopped short after the train coming in the opposite direction broke down. For three hours, passengers were trapped roughly 200 yards south of the station. At some point a student who had been loudly complaining to the conductor quietly opened the door and walked off into the night. A little after 10pm the train finally shunted its way to the platform and the rest of the passengers alighted. The next morning your by now rather grumpy correspondent proceeded to Chicago by bus.

Such stories of travelling by train in America are sadly common. The world’s biggest economy has fewer miles of electrified railway than Iran. Only in the North East Corridor (NEC) between Boston and Washington, DC, do intercity trains run even vaguely like trains in other rich countries. Elsewhere, Mennonites, who do not use cars or fly, make up a remarkable share of passengers. And yet as bleak as it can seem, Amtrak, the national rail carrier, is in fact recovering well from the pandemic. In the latter half of last year, ridership was just 3% below its levels in 2019—previously the firm’s best-ever year. And through his infrastructure law of 2021 President Joe Biden, an Amtrak superuser as a senator, has put aside $66bn for investment in passenger-rail infrastructure. Is a new golden age of train travel down the tracks?

The biggest recovery at the moment is on the NEC, an electrified track largely-owned and maintained by Amtrak directly. In 2023 trains there carried 12.7m people, a record high, and about 43% of all Amtrak passengers in total. The trains are well used in the north-east because they connect dense city centres and are nicer than the alternatives. “It’s more enjoyable and more comfortable” than flying, says Miles Stanley, a regular passenger between Boston, New York and Washington. Ticket revenues on the corridor easily cover the cost of operating the trains, and generate a surplus used for maintenance.

Elsewhere, rail is either directly subsidised by Congress (for the long-distance lines) or by state governments (for the rest), and trains travel on tracks owned by freight companies, all too infrequently. Passenger numbers are recovering on those trains too, but far less fast than on the NEC. It does not help that ageing rolling stock means those journeys are often getting worse. Derailments are absurdly common, as are crashes at level crossings. Your correspondent was once delayed several hours on the City of New Orleans, a long-distance train, by a frozen whistle.

If Amtrak were a normal company, it would pour money into the NEC and run fewer loss-making long-distance trains. Yet as Jim Mathews, the president of the Rail Passengers Association, a lobby group for riders, is keen to point out, Amtrak is more like a government agency than a company. Its bosses are appointed by the president and each year it has to be funded by Congress. And so the firm has generally tended to spread money around the country to win political support. Already it operates in 46 of the lower 48 states, and in 251 congressional districts. “It is a little cynical,” Mr Mathews admits.

For now, there is so much money around that the firm can invest in both. On the NEC, a civil-war-era tunnel near Baltimore where trains have to slow to a crawl is being rebuilt, something that ought to have happened decades ago. On the long-distance lines, new trains are being procured. But investment spending must be re-authorised in 2026, notes Yonah Freemark, of the Urban Institute, a think-tank. Another risk is that infrastructure-act money by law can be spent only on investment, not operational costs. Last year House Republicans proposed a 64% cut to Amtrak’s day-to-day budget—which if carried out would make investment pointless.

Some rail boosters have bigger ideas. On March 8th Seth Moulton, a congressman from Massachusetts, filed a bill proposing $205bn in investment in high-speed rail. He worries that Amtrak is “trying to recreate services from the 1930s”. Instead, he says it ought to build a brand-new fast train line, of the sort the Japanese or French have. This, he says, should be in Texas. “Showing that high-speed rail can succeed in a red state and get a lot of Republican support would change the conversation,” he says. Indeed Amtrak is working on a proposal to do just that, in partnership with a firm Mr Moulton used to work for. It’s certainly a platform.

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Accounting

Business Transaction Recording For Financial Success

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Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

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Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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