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Then why does Europe execute much better on infrastructure projects with similar labor costs (and more unionized workers and labor protections) and similar if n

Then why does Europe execute much better on infrastructure projects with similar labor costs (and more unionized workers and labor protections) and similar if not stricter environmental regulations? Seems like corruption is potentially the only big differentiating factor here.

jcranmer 6y ago
The New York Times' report on the exorbitantly overpriced Second Avenue Subway work highlighted extensive union featherbedding in that instance, which probably explains some (but not all) of the cost premium. Another plausible factor is the push to privatization and contracting in the US public sector removing effective management from the picture, so that the public sector is no longer capable of cost control. For example, by realizing when bidders on contracts are bullshitting too high or too low, or by pushing people to suggest cheaper designs. A corollary to the previous point is that the US generally seems unwilling to look at foreign countries (especially countries not named Canada or the UK) for insights into what can be done better. This can result in people not adopting newer, cheaper technologies in a kind of NIH syndrome. Another possible factor is that, for several kinds of projects, the US's diverging rules (e.g., FRA regulations basically banning all European rolling stock until they were revised a year or two ago) combined with a relatively low install base could be preventing economies of scale to make things cheaper. There's lots of plausible factors. Actually digging into what makes them so expensive is very time-consuming, and I suspect there is very little pressure (let alone ability!) from anyone on any side of the political spectrum to actually make it happen. It's much easier to pick the factor you personally believe in and say it's so without any evidence to back it up.
- Ididntdothis 6y ago
  “Another plausible factor is the push to privatization and contracting in the US public sector removing effective management from the picture, so that the public sector is no longer capable of cost control. “ This seems to be a big factor also in companies. My company’s IT department has outsourced a lot and so a lot of projects are managed by people who can’t judge if something is good or not. I have heard the same about government agencies. They have no experts left.
  - flukus 6y ago
    Even without the privatization there's been a big push for full-stack generalists that wear half a dozen hats and experts in many niches seem to be getting phased out. It's like a corporate version of grandma thinking you can fix her computer because your a "tech person". I get the impression this is happening in other industries too.

jcranmer 6y ago

The New York Times' report on the exorbitantly overpriced Second Avenue Subway work highlighted extensive union featherbedding in that instance, which probably explains some (but not all) of the cost premium. Another plausible factor is the push to privatization and contracting in the US public sector removing effective management from the picture, so that the public sector is no longer capable of cost control. For example, by realizing when bidders on contracts are bullshitting too high or too low, or by pushing people to suggest cheaper designs. A corollary to the previous point is that the US generally seems unwilling to look at foreign countries (especially countries not named Canada or the UK) for insights into what can be done better. This can result in people not adopting newer, cheaper technologies in a kind of NIH syndrome. Another possible factor is that, for several kinds of projects, the US's diverging rules (e.g., FRA regulations basically banning all European rolling stock until they were revised a year or two ago) combined with a relatively low install base could be preventing economies of scale to make things cheaper. There's lots of plausible factors. Actually digging into what makes them so expensive is very time-consuming, and I suspect there is very little pressure (let alone ability!) from anyone on any side of the political spectrum to actually make it happen. It's much easier to pick the factor you personally believe in and say it's so without any evidence to back it up.

Ididntdothis 6y ago
“Another plausible factor is the push to privatization and contracting in the US public sector removing effective management from the picture, so that the public sector is no longer capable of cost control. “ This seems to be a big factor also in companies. My company’s IT department has outsourced a lot and so a lot of projects are managed by people who can’t judge if something is good or not. I have heard the same about government agencies. They have no experts left.
- flukus 6y ago
  Even without the privatization there's been a big push for full-stack generalists that wear half a dozen hats and experts in many niches seem to be getting phased out. It's like a corporate version of grandma thinking you can fix her computer because your a "tech person". I get the impression this is happening in other industries too.