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> They can work like this Yeah they can. I mean sometimes the model you're suggesting works out great. Sometime it doesen't. > The government isn't actually o
by qwytw 3y ago
> They can work like this
Yeah they can. I mean sometimes the model you're suggesting works out great. Sometime it doesen't.
> The government isn't actually operating anything or setting any prices
Which is not necessarily a good thing if your goal is to increase the numbers of passengers by making mass transports more attractive than other options instead of maximizing it's potential profits.
And there are other examples were pretty controls are clearly in the societies interest. Let's look at what happened with energy prices in Europe last summer. A spike in fossil fuel costs caused the price of electricity to go up by up to 10x. Producers using hydro, renewables, nuclear even coal had massive surpluses. I can't think of any reasons against price controls in situations such as that. As a result such markets (.e.g stationary PC market) tend to stagnate.