Re:Amtrak Could Turn a Profit for the First Time
by michaelt on Monday November 18, 2019 @09:19AM
(#21564457)
> If infrastructure is really such a multiplier, people should be able pay for it from the multiples they earn, and the infrastructure owners will turn a profit.
Let's say a good quality rail link from Town X to some big center of employment has the following effects:
* Raises attorney Alice's salary from $150,000 to $175,000
* Raises barista Bob's salary from $23,000 to $28,000
* Raises retiree Clive's home price from $300,000 to $400,000 although he'll never set foot on a train himself.
* Allows business-owner Doris to fill a specialist job that previously she hadn't been able to fill, indirectly leading to a better product and improved sales in ways that are hard to quantify, but are probably several times that employee's salary.
Which of those should the rail link owners capture, and how would you propose they do so?
The challenge of for-profit infrastructure is, even if you choose ticket prices to capture 50% of Bob's benefit, you only capture 10% of Alice's benefit, and ~0% of Clive and Doris's benefits.
Let's say a good quality rail link from Town X to some big center of employment has the following effects:
* Raises attorney Alice's salary from $150,000 to $175,000
* Raises barista Bob's salary from $23,000 to $28,000
* Raises retiree Clive's home price from $300,000 to $400,000 although he'll never set foot on a train himself.
* Allows business-owner Doris to fill a specialist job that previously she hadn't been able to fill, indirectly leading to a better product and improved sales in ways that are hard to quantify, but are probably several times that employee's salary.
Which of those should the rail link owners capture, and how would you propose they do so?
The challenge of for-profit infrastructure is, even if you choose ticket prices to capture 50% of Bob's benefit, you only capture 10% of Alice's benefit, and ~0% of Clive and Doris's benefits.