There is another tunnel in the works for rail traffic as all others are at their maximum. The Governor of New Jersey just pulled the plug on it as they (the State) just doesn't have the money. Not that money isn't cheap right now. It is...the cheapest money for States to borrow against in history. I can see his point about borrowing and the potential for cost over runs but the high paying jobs that drive New Jersey's economy aren't in New Jersey - they are in New York City. We on Long Island are in the same boat. Our problem is we cut rail service and have lots of tunnels and bridges. Jersey is the opposite.
What does this mean? More cars into the city? More buses (which won't happen we are told as that is maxed out too)..more Waterway Ferrys? (they went belly up sometime back and are a shadow of their former selves). Hmmmm what to do what to do.
Krugman makes his case in the Times. I don't buy it all but some of his points are worth reading and thinking about.