In London that same fare in rush hour would be anywhere between $4 and $15+ depending on the length of the journey (and NYC has much higher GDP per capita than London, plus the £ is on its arse at the moment). Even Berlin is marginally more expensive, in a much smaller & less economically prosperous city.
Keep in mind also that if you don't raise fares you are effectively cutting them because of inflation.
Europe isn't the only "developed world," mate. My morning commute in Hong Kong (which is roughly the same distance as Brooklyn to the LES or, say, King's Cross to Paddington) costs around $0.50. I can go all the way to mainland China for ~$3.00.
$2.75 is roughly the maximum fare in Tokyo (where an unlimited day pass can be had for $5.25), and $3.00 in Seoul will take you 145 kilometers away.
As a side note, there sure are a lot of people in China that get prickly about the definition of "developed".
You don't know what you are talking about when it comes to Tokyo, mate. 600 yen covers a day pass for the Tokyo Metro only, doesn't cover any JR lines at all. And even then, it is only for the local/regular express trains not commuter express trains. Additionally, Tokyo metro lines mostly only cover, well... the metro area. Not the suburbs or places where a lot of people live.
One way to work for me in Tokyo is about 500 yen and I live relatively close by, I just have to switch train operators twice (you get charged both on distance, and a flat fee by each train operator). Many of my coworkers who live out in the suburbs with families pay a lot more, but luckily most Japanese companies cover transportation fees as part of your salary.
As far as the rest of what you are talking about, you are very much ignoring the difference in economies between those places. 10 HKD goes a lot farther in Hong Kong than the equivalent would in New York.
As I said elsewhere, I'm specifically only talking about the Tokyo Metro. I didn't include JR just like I wouldn't include the LIRR when talking about the NYC subway.
> Tokyo metro lines mostly only cover, well... the metro area. Not the suburbs or places where a lot of people live.
The same goes for the NYC subway. If I took the A train from one end to the other (uptown to queens), it's about 45km - only 5km more than going from Wakoshi to Shin-kiba, or riding the Yurakucho line end-to-end.
> 10 HKD goes a lot farther in Hong Kong than the equivalent would in New York.
I don't know how you're coming to this conclusion; Hong Kong is one of the most expensive cities in the world.
I've been to plenty of developed world cities where the cost is under $3.
Keep in mind the distances that the subway does (and has express service on) make it similar to the RER in Paris more than the metro.
You might be thinking of the RER, that has different pricing.
I understand your point now though: it's the long fares that are insanely cheap, due to the flat pricing model. There are only a few comparison points I guess since very few cities have a "subway" system that large (some may have large transit systems that reach the suburbs, but they are often separate from the subway and with a different pricing structure).
Being run entirely from fares means you are not at the whim of politicians for subsidies and grants that can change overnight with an election, which makes it very hard to think longer term.
I think this is what NYC should be aiming for - operationally covering its own operational costs from fares, advertising and property revenues with then state/federal grants for larger capital projects.
A fee increase to that level in other cities might have the opposite effect of reducing ridership and total revenues, against a largely fixed expense base, condemning the subway to a real "death subway".
The externalities of transport are massive, if a small number of people device to spend 15 minutes more in traffic to save the 8 pounds subway fare, the costs to society are simply astronomical because now everybody else has to spend those 15 minutes more too to get to where they need to go, even if they don't have the option of public transport for their route.
I guess they should just buy a car instead, right? Or live in Manhattan and walk to work?