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- From: borden@head-cfa.harvard.edu (Dave Borden)
- Newsgroups: ne.general
- Subject: Re: Drinking and the MBTA was Re: Sunday Liquor Sales
- Message-ID: <1992Dec22.160712.8746@m5.harvard.edu>
- Date: 22 Dec 92 16:07:12 GMT
- References: <1992Dec17.175334.15005@linus.mitre.org> <1992Dec21.155847.7913@m5.harvard.edu> <PSHUANG.92Dec21202139@ninja.mit.edu>
- Reply-To: borden@m5.harvard.edu
- Organization: Smithsonian Astrophysical Observatory, Cambridge, MA, USA
- Lines: 71
-
- In article <PSHUANG.92Dec21202139@ninja.mit.edu> pshuang@athena.mit.edu (Ping-Shun Huang) writes:
- >In article <1992Dec21.155847.7913@m5.harvard.edu> borden@head-cfa.harvard.edu (Dave Borden) writes:
-
- > > I would be pretty upset if government restricted the private shipping
- > > companies in such a way that good quality shipping became unavailable
- > > or more expensive than it is now.
- >
- >I agree that the quality and speed of the US Postal Service sometimes
- >leaves a bit to be desired (fancy, litotes from a MIT student... :).
- >However, if private industry continue to successfully assume the most
- >profitable parts of the shipping business, such that USPS is forced to
- >charge more and more and eventually there is a revolt, and Congress
- >revoke their charter and lets the private shippers battle it out in a
- >laissez faire marketplace... you wouldn't be able to mail things to many
- >places. Remember, the Postal Service will deliver anywhere, but many of
- >the shipping companies will not. Likewise with bus service.
-
- That's really a political issue, whether Congress will support the US
- postal service. Ideally, if the USPS gets less business, it will also
- spend less money in providing the reduced level that it's called upon
- to provide. The government can still subsidize the less profitable
- areas of USPS' services, and there's no net loss to society as a whole;
- it just means less money is being funnelled through the government (which
- is good). The recent layoff of about twenty thousand postal workers has
- shown that even in American government expenses are trimmed sometimes.
- (Mind you, I'm not necessarily supporting that decision - I don't know
- the details of it, and I prefer slow phase-outs to harsh layoffs anyway.)
-
- >Another important issue is what kind of costs are there to put up basic
- >infrastructure for the industry -- this differs greatly between mail
- >delivery and electricity/water/gas delivery, I suspect public
- >transportation falls somewhere in between. USPS doesn't have to share
- >facilities with FedEx, but if two companies were allowed to compete in
- >the Northeast to provide electrical power, it seems ridiculous to have
- >to have two sets of power lines throughout the several states here, and
- >clearly if one company focused on just supplying power to urban areas,
- >they would have to invest much less in physical infrastructure.
-
- Does anyone know how the different long-distance phone lines work? It's
- a similar level of commitment to power lines, yet we have several major
- long-distance carriers. The resulting competition has given us all lower
- rates. (Of course, I just wind up making more phone calls and my phone
- bill is even larger...)
-
- >Anyway, I think you are quite right in that a private company may indeed
- >be able to provide some subset of the MBTA's services at much lower
- >cost. However, the start-up capitalization would certainly be
- >non-trivial.
-
- Let them try, if they want to. The MBTA already has the infrastructure it
- needs, so there's no risk to that aspect of the MBTA's finances.
-
- > I mentioned this casually in my earlier posting, but what
- >*IS* the MBTA charter, and *DOES* it expressly forbid any private
- >service which could be construed as competition? If it does not, then I
- >think that, in accordance with your admiration of the private sector in
- >China's economy, that clearly free-enterprise has spoken and disagreed
- >with you. :)
-
- Exactly - private enterprise won't do it if it's not profitable. And what
- it doesn't do, government can still provide, if it's deemed necessary or
- desirable. I'm not attached to the idea of riding private bus lines - I
- just want it to be allowed; then we can all make our own choices. If no
- one wants to start one, then that's the choice made by free people, and it's
- fine with me.
-
- >It takes a full business plan and not just speculation on
- >the Usenet to create economic reality, after all....
-
- - Dave Borden
- borden@m5.harvard.edu
-