B-Bob - At a quick glance, I agree with you that some sort of rail transit option is viable for the bay area. I know for a fact that the current rail transit options are NOT viable in any sense of the word. I think a more efficient system would involve large reductions on far routes to suburban areas (which tend to be highly cost ineffective) and an increase in service frequency between urban cores, like SF to Oakland or SF to Berkeley (these routes, while heavily served, also tend to be congested). Then if they raised the peak hour fares (rail commuters during peak hours are highly subsidized, because compared to alternate transportation, they're riding really cheaply) you would see a [closer to] optimal reduction in congestion, as workers would have incentives to not travel during the daily commute times. I think something could work there, but on a much smaller scale. Admittedly, I've only been out there once or twice, and my geography of the area is poor, but I know that there's no reasonable economic justification for BART to operate way the hell out to places like Freemont. I understand your point about preferences changing, and that Americans might not be into the world of strip malls and suburban hell. My only response is that it's not clear at all that the majority of American's DON'T like suburbs. In fact, residential growth patterns would suggest the opposite. I don't know whether this is due to suburbanization incentives (i.e. underpriced roads, utilities) or not, but I do know that the majority of Americans prefer suburban living to urban living. Me? I grew up in suburbs, live in an inner city now, and pray I don't end up back in the 'burbs in the next 10 years at least. But I have no business telling people that living in the suburbs is lame and inferior to urban living, no matter how strongly I feel that way. Americans are a suburban people that like their automobiles. The point of economic policy -- or any government policy for that matter -- isn't to try to change people's preferences. That's a personal right. The idea is to take people's preferences as given, and then maximize everybody's well being.