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The key point is that you need tax revenue to manage (build, own, operate, or regulate) public infrastructure well. Expecting great rail, road, or internet ser

The key point is that you need tax revenue to manage (build, own, operate, or regulate) public infrastructure well. Expecting great rail, road, or internet service without paying high taxes and strong government involvement hasn’t worked out. Nothing in your post contradicts that. In many cases, public funding was even required to put in place the core infrastructure and conditions for privately operated companies to succeed. That’s certainly the case for high speed rail in Germany.

rayiner 8y ago
> Expecting great rail, road, or internet service without paying high taxes and strong government involvement hasn’t worked out. Nothing in your post contradicts that. All of the examples in my post are ones where "high taxes" aren't used to pay for infrastructure, or where "government involvement" is limited because infrastructure is managed by for-profit corporations. Stockholm doesn't have pervasive fiber because of "high taxes" (tax dollars were not used to build the network) or "strong government involvement" (while Stokab is owned by the city, it is a for-profit corporation and the city does not control its rate and expansion plans). Denmark's telecom system, likewise, is owned by a private company, was not built with public money, and is loosely regulated (Denmark got rid of its telecom regulator recently). Japan's railways (owned by private companies which mostly run at a profit), and London's subway (which breaks even through fare revenue) are examples of great infrastructure that are not the result of "high taxes" and "strong government involvement." It's fair to point out that European systems aren't completely privatized and often receive subsidies. There is a spectrum. But the U.S. is generally on the left-side of that spectrum. U.S. passenger rail is almost entirely government-owned, government-run, and heavily subsidized. New York receives half its budget from taxpayer funding, for example. Europe tends to be further right on the spectrum. For example, in the U.K. a government agency owns most of the track, but private Train Operating Companies own the trains and provide service. And London's subway system receives all its funding from fares. You see high levels of privatization in the U.K., Germany, Netherlands, Denmark, etc. You also see multi-national competition--half of train operating companies in the U.K. are foreign firms; Deutsche Bahn subsidiaries operate passenger rail service in the Netherlands, etc. Can you imagine NY MTA opening up its network to competing operators from Europe? Now, European systems receive subsidies, for sure. But Deutsche Bahn at least runs an operating profit. U.S. rail operators universally rely on tax dollars just to meet their operating expenses (and rely on the government for all of their capital expenses). At the other end of the spectrum, many Asian rail systems receive few subsidies, and are mostly responsible for their own capital expenses. Japan, Hong Kong, and Singapore systems are operated (and often owned) by private companies, and run a significant profit.

rayiner 8y ago

> Expecting great rail, road, or internet service without paying high taxes and strong government involvement hasn’t worked out. Nothing in your post contradicts that. All of the examples in my post are ones where "high taxes" aren't used to pay for infrastructure, or where "government involvement" is limited because infrastructure is managed by for-profit corporations. Stockholm doesn't have pervasive fiber because of "high taxes" (tax dollars were not used to build the network) or "strong government involvement" (while Stokab is owned by the city, it is a for-profit corporation and the city does not control its rate and expansion plans). Denmark's telecom system, likewise, is owned by a private company, was not built with public money, and is loosely regulated (Denmark got rid of its telecom regulator recently). Japan's railways (owned by private companies which mostly run at a profit), and London's subway (which breaks even through fare revenue) are examples of great infrastructure that are not the result of "high taxes" and "strong government involvement." It's fair to point out that European systems aren't completely privatized and often receive subsidies. There is a spectrum. But the U.S. is generally on the left-side of that spectrum. U.S. passenger rail is almost entirely government-owned, government-run, and heavily subsidized. New York receives half its budget from taxpayer funding, for example. Europe tends to be further right on the spectrum. For example, in the U.K. a government agency owns most of the track, but private Train Operating Companies own the trains and provide service. And London's subway system receives all its funding from fares. You see high levels of privatization in the U.K., Germany, Netherlands, Denmark, etc. You also see multi-national competition--half of train operating companies in the U.K. are foreign firms; Deutsche Bahn subsidiaries operate passenger rail service in the Netherlands, etc. Can you imagine NY MTA opening up its network to competing operators from Europe? Now, European systems receive subsidies, for sure. But Deutsche Bahn at least runs an operating profit. U.S. rail operators universally rely on tax dollars just to meet their operating expenses (and rely on the government for all of their capital expenses). At the other end of the spectrum, many Asian rail systems receive few subsidies, and are mostly responsible for their own capital expenses. Japan, Hong Kong, and Singapore systems are operated (and often owned) by private companies, and run a significant profit.