Why New York City Stopped Building Subways (2018)
&gt; Mayor Fiorello LaGuardia took advantage of the disastrous finances of the BMT and IRT, ravaged by the Depression and the ban on fare increases, to acquire both companies<p>&gt; With the subways now in municipal hands, a doubling of the fare was finally negotiated. Years of deferred maintenance by the cash-strapped private companies had become increasingly evident. But by then, fare hikes only exacerbated the problem of declining ridership.<p>So the government destroyed the system through price controls. Odd that City Lab doesn&#x27;t explore that angle further.<p>Price regulation continues to be a problem with the subway. Fares on the MTA are half those of the London Underground. New York relies heavily on subsidies to cover operating costs, while the London Underground covers its operating costs through fares: <a href="https:&#x2F;&#x2F;www.theguardian.com&#x2F;money&#x2F;us-money-blog&#x2F;2014&#x2F;sep&#x2F;29&#x2F;public-transportation-subway-tube-expensive-ticket-rich-" rel="nofollow">https:&#x2F;&#x2F;www.theguardian.com&#x2F;money&#x2F;us-money-blog&#x2F;2014&#x2F;sep&#x2F;29&#x2F;...</a>. That makes the MTA much more sensitive to changing political winds, as opposed to the Underground, which can pay its ongoing maintenance costs regardless of what the politicians are doing.