With the State of the Union Address and President Obama’s chat with the Republicans there is an ocean of … well, call it stuff to sort through. In the mix is the idea of building a high speed rail system to both create jobs and strengthen the country’s infrastructure. The pundits who have been feasting on Obama’s pronouncements have largely come up short on this subject. In my view, high speed rail is (1) a wondrous thing, (b) expensive, © best suited to densely populated countries, and (d) perhaps impossible to implement here. If it can be done at all, jobs would probably be a decade away.
I think it is possible for government to compete fairly with private enterprise, although I cannot think of an instance where it has happened. When the question is posed, what first comes to mind are subsidies by taxpayers to the government operation. That’s true, but there are also issues of access to and the cost of capital, costs of building market share, equatable rules of competition, and the risk of failure. All of these factors must be taken into account when considering if there is level playing field. I’m here to help.
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