The problem is with all the implicit & explicit Govt Subsidies, no one knows how much it actually costs to move a ton of freight or a person 1 mile. Without those numbers it's very difficult to say which is the most efficient use of resources.

Take AMTRAK. Instead of the Feds taking over Passenger trains, what if the Feds instead just started making up the loses the Class 1s had on their existing passenger service? Allow them to make money on what was money losing service, allow them to make enough to purchase replacement equipment, and even expand service if they thought it was practical?

No different that the Feds & States that ended up subsidizing air service in small airports. The Feds didn't start an airline to serve those markets. They just used the existing airlines.