Jeffery
The creation of Amtrak could be explained through President Reagan's famous comment to the 1986 White House Conference on Small Business:
"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
The labor, regulatory and tax environment of the 1950s and 60 made railroading a decreasingly profitable business. The northeast and upper midwestern lines were particularly poorly off due to their over built condition and technological changes that made other modes of transportation more attractive to shippers. Just two years after the merger of the Pennsylvania, New York Central and the New Haven the Penn Central ran out of cash and became the largest US corporation to enter bankruptcy up to that time. A year later Amtrak began operation. Amtrak's creation was an attempt by the federal government to keep some form of intercity rail passenger travel available to the public while relieving railroads of the burden of government mandated services that contributed to the Penn Central bankruptcy and threatened to push others into bankruptcy. In other words it was an attempt to save for profit freight railroading by relieving it of the burden of unprofitable passenger service.
There are two books that are essential to understanding the Penn Central bankruptcy and the reforms that followed and enabled railroad renaissance of the last 30 years.
For the fall read The Wreck of the Penn Central by Daughen and Binzen.
And for the comeback from the collapse read The Men Who Loved Trains by Rush Loving.
You can watch a C-Span video of Rush Loving speaking at the B&O Museum here.
http://www.c-spanvideo.org/program/MenWh
The story of the industry collapse that resulted in the creation of Amtrak will introduce you to some vitally important but little known characters like Jim McClellan.
It will also break some stereotypes. One of the most important political figures in favor of federal transportation deregulation was President Jimmy Carter.