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Agreed. The government using private contractors to maintain the infrastructure is fine. In that instance, the government can still account the resource in a ho
by nkoren 10y ago
Agreed. The government using private contractors to maintain the infrastructure is fine. In that instance, the government can still account the resource in a holistic fashion. Where it makes sense for end-user-fees to completely pay for the infrastructure, then fine (sometimes it will). But where it makes sense to minimise end-user-fees so as to maximise the positive externalities (and recoup the costs out of taxes), then they can still do that. Whether the workers on the infrastructure are managed by a public or private manager, in this case, doesn't make a lot of difference.
The problem occurs when a private entity must make a self-contained business case off the back of the infrastructure. Since they'll never be able to capture any of the positive externalities, they have to take everything out of end-user-fees, externalities be damned. This can be very, very bad for the city as a whole.
And yes, agreed about cable internet being in this category too!