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The Three Regimes of American Transportation Policy

American transportation has developed from the intersection of private interest and the public good. The states and the federal government played extensive roles in the development of roads, canals, railroads, airways, and highways. The federal government shaped the regulatory structure against transportation in such a manner to favor certain transportation alternatives over others. American railroads, among the largest and most powerful corporations at the turn of the twentieth century, saw their influence tremendously weakened by government regulation, necessitating a new regime by the 1980s that stressed deregulation of transportation pricing and service, while still having government regulate safety and environmental concerns. The result has been favorable for all forms of transportation in the country in providing lower prices for shipment of freight and passengers.