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That is a complex question with no one right answer.

Transit isn't just a chauffeured limo ride for rich people to ride to their job downtown, while saying they are helping the environment. If that was the only reason for transit it should pay for itself (a small fare increase might be required).

Transit is for the poor: those who can't afford a car, and have no prospect of getting a better job. These are a large number of such people, who really can't move up. Cheap transit means they can just afford rent and food thus meaning society doesn't have to do more to take care of them. Cheap is a matter of pride, it lets them think "I pay my full price for everything", while the real costs are hidden.

Transit is for the disabled. Many of them are poor (see above) - but even the rich ones cannot drive for some reason. A transit system means they have a way to get around and thus causing more work for nurses and the like. It is cheaper to subsidize a bus to the hospital and an ambulance.

Transit is to reduce load from the road network. A bus with just 3 riders is using less road than those riders in a car. thus cars should cheer the bus as it means less traffic for drivers to deal with. As traffic gets worse it is cheaper to shift drivers to transit than to build a road. Thus subsidies to transit can have the same effect as building another road at much less cost, making driving cheaper to everybody.

Transit has strong network effects. One bus/train isn't useful for many people, as you add more lines and service times the transit system becomes more useful to everybody. However this requires expensive upfront investment to get to the level of service required for people to ride. This investment is hard to pay for.

There is lag time between transit existing and people riding. Someone with a car won't bother to try the transit system even if they are the perfect candidate (a direct route from point a to point b that is faster than driving) they are so used to driving they won't look up the route right away. It can be years between opening a system and everybody who would ride actually riding. In the mean time the investment has to be paid for.

Transit allows denser building, which in turn allows higher property taxes. Thus a transit system should be subsidized by the property near where it stops (400m in each direction or some number in that range) as the property owner is benefiting from the transit in the form of increased property values.

Your city needs to fix the transit problems you noted. My city has very nice buses that I ride every day. This will require investment, but once it is paid for I think you will find like me that you will sell the car and use the bus to get around. Counting my taxes to pay for transit, and fares, I break even vs paying for fuel, maintenance, and insurance on my car (which was paid for years ago so I'm not counting costs to buy the car - in some years I will have to replace the car though and then I'm way behind)



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