The $5 Fare Myth: Why Free Public Transport Doesn’t Fix Traffic

What if making buses and trains free didn’t reduce congestion—and actually made public transport worse?In this deep dive inspired by the Productivity Commission report, we unpack the hidden economics behind public transport pricing. From the collapse of transit’s 90% dominance to the rise of car dependency, we explore why fares only cover a fraction of real costs—and why that’s by design.You’ll discover:The “invisible price” of crowding and discomfortWhy free transit often fails to reduce trafficHow subsidies actually benefit both riders and driversThe surprising truth about who really benefits from cheap faresThis episode challenges one of the most intuitive ideas in urban policy—and replaces it with a far more complex reality.