<!-Quote-!>Quote:Efficiency isn't the only test of capitalism. As I mentioned earlier: "However a road business would charge its rates, you can be guaranteed that it is impossible for them to charge people who didn't use the road." How do you suppose that a municipalities acquires the money to "raise the capital needed for investment" or compete with companies in a situation where "prices were so low that none of the companies could turn a significant profit"? And who do you suppose is making up the difference in "rural communities [that] were left with no competition & high prices due to the slim profit margins of sparsely populated regions"?Very bad example. A lot of infrastructural investments have what is known as a natural monopoly. Taking the British water industry as an example, most companies competed bitterly over the valuable urban business to the point where prices were so low that none of the companies could turn a significant profit, and rural communities were left with no competition & high prices due to the slim profit margins of sparsely populated regions. These multiple systems were not used to capacity (failing the prime test of capitalism - effective distribution of capital to places where it is best invested). Eventually, following a series of water-borne epidemics in the mid-19th Century (not necessarily linked to private water supplies), the government allowed municipal authorities to invest in the water & sanitation of their municipalities. They were better able to raise the capital needed for investment than the private companies. <!-/Quote-!>
<!-Quote-!>Quote:The allegation that it might not look pretty is a lame argument. I will ignore it. Anyway, transportation companies that cannot operate with the power of government backing them would also not have the power of eminent domain, meaning they couldn't force anyone to sell their land if they didn't want to. Wasn't the problem with the water companies earlier that they had problems raising capital, and here you assume that 3-4 different companies could raise the capital for several 6 lane highways between the same 2 points when you also mentioned that the several water companies earlier could barely make a profit when more than one was operating in the same area? Haven't you noticed what happens when companies struggle and fail? They are bought up by more successful companies, have mergers or closures. If there is a natural monopoly, there will eventually be one company filling it.I suspect similar issues would arise for road and rail investment - possibly even worse as few people would like to see 3 or 4 companies competing in the provision of 6-lane highways between, say, New York & Washington. If nothing else, that much tarmac is a massive blight on the landscape, not to mention the difficulty in finding routes that are acceptable to all communities on the way (who won't benefit much from the 'competition' element as intermediate large towns may not be served by more than one company anyway). <!-/Quote-!>
<!-Quote-!>Quote:Public-private partnerships is an invitation to corruption this was my point earlier. If the charges are not excessive but only appear so, government can only do better by passing the cost onto people disproportiate to use. If charges are actually excessive, then it would indicate that the government picked the contractor poorly and it would be better off outside the hands of government.Infrastructure is best left to those who can plan a rational network. This does not stop private companies from benefiting (public-private partnerships, licensing of routes by government agencies to ensure maximal network utilisation), but the experience here in the UK is that government cannot write a semi-decent contract to ensure that private companies involved make a profit without burdening the users with excessive charges: <!-/Quote-!>
<!-Quote-!>Quote:I'm sure we both agree that defrauding investors by using inaccurate data is something that should be dealt with by the courts, thus something that is under the power of government. However, there is a difference between saying something should be illegal and saying something should be regulated. Committing fraud should be punished, but imposing regulations won't reduce fraud anymore than making the commitment of fraud illegal. If we have the commitment of fraud be illegal, why do we need regulations?- Bailout of London and Continental Railways as their build and operate contract for the UK's first high-speed line caused major financial difficulties due to over-optimistic revenue forecasts (again, capital can only be rationally invested if you assume that all parties act rationally - unfortunately, companies have a poor track-record at this as they often 'big-up' their forecasts to attract investment. Better government regulation can help mitigate this). <!-/Quote-!>
<!-Quote-!>Quote:Does this mean that we should hand out money to people because they might commit crimes? If I threaten to harm you, will you give me money to prevent me from harming you? Wait, isn't that the idea behind robbery?It seems (final graph) that there is a strong correlation between income inequality and societal problems (the study included 25 things like murder and suicide rates, prison population, mortality, sexually transmitted diseases, abortions, marriages, deaths, alcohol consumption, poverty and unemployment). The US shows up quite badly in this, most of Europe does fairly well, as usual the UK straddles the Atlantic being neither as good as Europe, nor as bad as America.<!-/Quote-!>