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It's a case study in why putting public utilities on a free market is self destructive. The company that neglects maintenance drives the costs down and wins, d
by jandrese 6y ago
It's a case study in why putting public utilities on a free market is self destructive. The company that neglects maintenance drives the costs down and wins, driving out the competition. Once they have an effective monopoly the utility collapses from a pileup of deferred maintenance and has to get bailed out by the taxpayers.
On the upside some very rich people got way richer than they would have under a traditional regulated utility situation.
- s1artibartfast 6y agosounds like poor management. Why do you think the same individuals overseeing the private utilities would do a better job of managing public utilities? Public utilities rot on the vine and get bailed out as well.
- jandrese 6y agoThe market rewarded short term thinking that resulted in lower prices at the expense of much more expensive repairs later. Companies that were properly managed were outcompeted and got bought out by the short term thinking competitor.
- s1artibartfast 6y agoDoesn't politics favor short term thinking as well?
- jandrese 6y agoElected officials yes. Civil Servants that don't get swapped out with each administration not so much. People like your county water commissioner.