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Old 06-17-09 | 06:04 PM
  #104  
KurtAV
Senior Member
 
Joined: May 2009
Posts: 81
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From: New Orleans, LA
Originally Posted by Ekdog
Do they really? I'll take your word for it because I know next to nothing about the Japanese system, but I have spoken to people from other countries that have privatised their rail systems, and the picture isn't so rosy. Take Britain, for example. Privatisation there has led to much higher fares and a cutting back of services. And what about the U.S. itself? Hasn't laissez-faire capitalism done a great job of providing Americans with fast, efficient and economical mass transit?

This may come as a shock to you, but I don't want public services to make a profit. I'm willing to pay taxes for things like trains, streetcars, healthcare, police and fire protection, libraries, schools, and so on. You see, I actually believe there is a role for the public sector.
Cities and other governmental entities have a virtual monopoly on mass transit in the U.S., so casitigating capitalism for failing to provide those things is kind of silly. Government regulations and NIMBYism are just two examples of barriers to entry by the private sector into the mass transit business that come immediately to mind. Public-funded subsidies to exisiting systems are also a huge impediment to privately funded competition for the public systems.

Even with huge barriers to entry to the mass transit business, there are some great examples of non-subsidized, private mass transit systems in the U.S. Vanpools run by companies like VPSI work very well for many people. I rode in those and on a private bus to and from New Orleans for over 8 years. It was faster, cleaner, more convenient, and cheaper than most subsidized public systems. The slugging system in and around DC is another example of private enterprise filling a need better than the public sector can. People line up at known slug centers and are picked up by people who want extra riders so they can use the HOV lanes. Slugs get free transport, drivers save time, and there are fewer cars on the road; everybody wins.

Fares went up when Britain privatized rail systems? Of course: The government was no longer taking money from everyone to pay for a service that only some used. What happened to the total cost of the service on a per passenger mile basis after privitization? If it was done well, I bet it went down.
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