Over the next two decades, railroad passenger volume will steadily decline, from 790 million riders to 298 million, as people choose other means of transportation. Cars, which allow people to go directly from point to point, will explode in popularity. Airplanes will start to capture long-haul passenger traffic, also eating into the railroads' business. The number of commercial airline passengers in the United States reaches 16.7 million. 1950 U.S. railroad mileage, now at 224,000 miles, continues to drop.
Railroads make an expensive decision to convert their entire locomotive fleets to diesel power.
To service Americans' growing love for car travel, Holiday Inn opens the nation's first motel chain. Americans are increasingly taking car vacations, and the chain is an instant success. The Federal Aid Highway Act authorizes the construction of an interstate highway system of more than 40,000 miles. Railroads and public transportation systems remain unsubsidized. This massive public works project will lead to a major shift in population from city to suburb, and to increased American reliance on the automobile.