Originally posted by Spiffor
I'd like to remind to the proponents of privatization, however, that a privatization is not always good news.
Private rail companies will have to be profitable. Which means they can't have artificially low prices for their fare. It will deprive many to use trains. In turn, these people will switch to cars and worsen transportation on highways, which is bad news for everybody (negative externalities). Besides, some people will not be able to afford transportation at all, because they cannot invest in a car. By destroying their mobility, privatization also bars employers in neighbouring cities for having access to an enlarged pool of workers.
I'd like to remind to the proponents of privatization, however, that a privatization is not always good news.
Private rail companies will have to be profitable. Which means they can't have artificially low prices for their fare. It will deprive many to use trains. In turn, these people will switch to cars and worsen transportation on highways, which is bad news for everybody (negative externalities). Besides, some people will not be able to afford transportation at all, because they cannot invest in a car. By destroying their mobility, privatization also bars employers in neighbouring cities for having access to an enlarged pool of workers.
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