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Except that Profits = income - Expenses (in simplified form). So, that 20% Profit you mention is money NOT spent on infrastructure investments.
by mrunkel 9y ago
Except that Profits = income - Expenses (in simplified form).
So, that 20% Profit you mention is money NOT spent on infrastructure investments.
- rayiner 9y agoSure. But it’s money that motivates BT to spend money on infrastructure investments. No matter how you structure your infrastructure markets, ensuring adequate investment is the single most important thing. You can do this with markets or quasi markets, or you can do it through government agency decision making. With the former, you need to ensure attractive returns on investment. Not merely bare profit, but enough profit so that the billions of dollars don’t get invested elsewhere. Having the government make the decisions doesn’t magically eliminate the issue of ensuring adequate investment. It makes it even harder! With the government is on the hook for making investments, you’re always subject to pressure from other priorities. There is a reason roads and bridges and water systems in the US are crumbling. We’ve dramatically underinvested.