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There's a deeper issue, which is that such analyses always treat profitability as the key goal. This is public infrastructure -- it doesn't need to be profitabl
by barathr 5y ago
There's a deeper issue, which is that such analyses always treat profitability as the key goal. This is public infrastructure -- it doesn't need to be profitable, just meet some more important public goal. We shouldn't expect that the electric grid be profitable in providing power to rural customers (and, similarly, mail delivery), and providing low-carbon, high-speed, easy-to-use transportation to everyone is an important societal goal.
- admax88q 5y agoPublic services also have the benefit of being connected to the greater tax pool. If profitability is a goal of a public service, it shouldn't be measured in isolation. If the service causes an indirect increase economic activity it will cause a proportional increase in tax revenue.
- loeg 5y agoI think the author touches on this? France seems to include social value in its profitability calculations. (SNCF is the French state-owned railway company.)