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Given the key function railroads had in opening up the west, I think you'll struggle to argue that that was even close to a bad deal. Indeed, that, if anythin

Given the key function railroads had in opening up the west, I think you'll struggle to argue that that was even close to a bad deal. Indeed, that, if anything, is exactly the kind of investments that a government should be making.

dnautics 9y ago
nongovernment investments tend to be more sustainable, because they are driven by observed demand, instead of cronyism or politics. This was one of the few railways to survive the great railway crash, it's still operated today: https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.) https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.)
- jychang 9y ago
  > This was one of the few railways to survive the great railway crash The government well made its money back before the great railway crash. Let's say the Internet suffers a crash in a few decades. Few would argue that any previous investment into the Internet was not worth it.
  - dnautics 9y ago
    you're cherry picking an example that succeeded. Let's say DARPA's investment in ESP doesn't turn out in a few decades. Few would argue that any previous investment into ESP was not worth it. (disclaimer: I'm being paid on a stupid darpa grant now)
- icebraining 9y ago
  Non-governmental investment - except for the 3 million acres in Federal land grants.
bufordsharkley 9y ago
If in the mid-19th century these were gifted to the railroad companies as 99 year leases, the value to the companies wouldn't have been very different, but we wouldn't be in thrall to them today.
- BRAlNlAC 9y ago
  and what if the railroads looked at the 99 year lease offer and said, "no thanks fam"? What if is such a pointless game to play.
  - bufordsharkley 9y ago
    99 year leases have been very, very common throughout history. Simply doing a present value calculation yields the result that to an investor, a 99 year lease and a 999 year lease are approximately the same value today.

dnautics 9y ago

nongovernment investments tend to be more sustainable, because they are driven by observed demand, instead of cronyism or politics. This was one of the few railways to survive the great railway crash, it's still operated today: https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.) https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.)

jychang 9y ago
> This was one of the few railways to survive the great railway crash The government well made its money back before the great railway crash. Let's say the Internet suffers a crash in a few decades. Few would argue that any previous investment into the Internet was not worth it.
- dnautics 9y ago
  you're cherry picking an example that succeeded. Let's say DARPA's investment in ESP doesn't turn out in a few decades. Few would argue that any previous investment into ESP was not worth it. (disclaimer: I'm being paid on a stupid darpa grant now)
icebraining 9y ago
Non-governmental investment - except for the 3 million acres in Federal land grants.

bufordsharkley 9y ago

If in the mid-19th century these were gifted to the railroad companies as 99 year leases, the value to the companies wouldn't have been very different, but we wouldn't be in thrall to them today.

BRAlNlAC 9y ago
and what if the railroads looked at the 99 year lease offer and said, "no thanks fam"? What if is such a pointless game to play.
- bufordsharkley 9y ago
  99 year leases have been very, very common throughout history. Simply doing a present value calculation yields the result that to an investor, a 99 year lease and a 999 year lease are approximately the same value today.