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Re:Texas electric firm files for bankruptcy citing $1.8B in ... by eqvinox on Monday March 01, 2021 @06:14AM (#26301635)
Road networks are a great example. Just assume the hypothetical position of a competitor. Where are you gonna build a competing road in, say, NYC? Each block only has 4 sides, and each of them already has a street.

You could maybe compete on interstate highways or other long-area bits. Maybe. That's stretching it.

Build a competing water supply network to each house? Another set of sewers? Electricity distribution? Hell no.

IMHO all of these things should be communal property & development. The preconditions for free market are not met, it's not possible to compete; so the whole market equation falls apart.

Hand the operation & maintenance out to some company or whatever, there it's possible to compete. But not the actual physical infrastructure.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by m4rtink on Monday March 01, 2021 @07:47AM (#26302252)
Seems to work fine in Japan for railways - there are three different rail connections from Tokyo to the Narita International Airport for example, each run by a different company (at the same time, we have 0 rail/subway connections to the Prague Airport:P).

Same thing in many other places - in Kyoto there is big and nicely build station by JR and, Transport Tycon style 200 meters from it another big station by IIRC Kintetsu.

Or in the middle of Tokyo, the Minami Senju station is effectively three station - One on the JR Joban line, one on Tokyo Metro and deep bellow another one on the Tsukuba express line.

So its definitelydoable, even in the most densely populated of places, at least with rail.

Also when you compare with places that have little to no competitionon the rail network you can clearly see the lack of service quality resulting from that. Well, if you get any service at all. :P

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by hinoki on Monday March 01, 2021 @08:12AM (#26302414)
I just found this [0] paper about the development of the Tsukuba Express, one of the more recent train lines into central Tokyo.

Land owners whose land is taken away are given new plots of land that are smaller, but closer to stations. These smaller plots are worth more than the original land because they are now near (future) train stations.

[0] http://www.wctrs-society.com/wp-content/uploads/abstracts/ri...

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by m4rtink on Monday March 01, 2021 @03:53PM (#26308248)
That's really clever idea, no wonder they can get it to work, thanks for the article!

BTW, that's something else I noticed in Japan - train stations are almost always hubs of commercial and often also cultural activity - there are shops, hotels, good restaurants and often also galleries, event spaces, monuments and even the buildings themselves are often architectonic masterpieces (for example JR Kyoto station, just check it out!). This definitely helps with passenger numbers and keeps the whole thing sustainable not to mention profitable.

In comparison Czech & Slovak railway stations (Prague, Brno, Bratislava) are often run down, dirty, fregvented by questionable people who aren't going to ride the trains and any shops or food places are cheap low quality ones. As a result one tries to spend as little as possible on these train station, let alone spend there any money for the few sub-par amenities available.

It's really strange why it is like this, given the missed commercial opportunities, seems to be much better in other european countries (Vienna, Eindhoven, etc.).

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by hinoki on Monday March 01, 2021 @06:15PM (#26309835)
In Japan, the train companies own the land immediately around the station to develop themselves, so the incentives line up to provide both good transportation service and things people actually need near the stations.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by pm215 on Monday March 01, 2021 @08:57AM (#26302776)
I feel like all these urban-Japan examples are more "only in the most densely populated places" rather than "even". If demand is high enough then you can absolutely support multiple competing routes: they all get enough passengers to survive, and the denser coverage is beneficial. It's when you get a bit further out and into smaller or less dense areas that it starts to get tricky -- different private railways end up complementary to each other as they serve different suburbs but are the only railway for most of the places they serve.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by eqvinox on Monday March 01, 2021 @09:06AM (#26302852)
"yes, but:" the lines don't provide the same service along their path. Just because you can get from some point in Tokyo to NRT airport on 3 different services doesn't mean that these 3 services are competing on everything else. Same for the different lines and companies in other places.

I would actually consider this an odd example of "long-range" transport.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by bko on Monday March 01, 2021 @06:48AM (#26301832)
I don't know if NYC infrastructure is a good example.

The second avenue subway was the most expensive subway in the world on a per mile basis. Considerably more expensive than Paris or Tokyo

> The estimated cost of the Long Island Rail Road project, known as “East Side Access,” has ballooned to $12 billion, or nearly $3.5 billion for each new mile of track — seven times the average elsewhere in the world

Similarly, the fare only covers around 50% of the operating costs which hardly seems fair for NY state taxpayers that pick up the expense despite receiving no benefit.

The competing services for infra in NYC are cabs, car pools, private buses, bike rentals, scooters, subways. For getting into/out of the city, you have a number of bridges. For instance, I can take Lincoln tunnel, Holland Tunnel or ferry. It would be great to have more options and obviously its not easy to build tunnels, but private ferry and water cab services could be expanded

[0] https://www.nytimes.com/2017/12/28/nyregion/new-york-subway-...

[1] https://www.bloomberg.com/news/articles/2019-03-14/what-s-a-...

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by adrianN on Monday March 01, 2021 @07:23AM (#26302071)
I don't understand why so many people assume that public transport needs to cover cost with fares. It provides immense public utility, even to the people who don't use it. It makes perfect sense to subsidize it. And it's not like taxes on cars pay for all their externalities.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by bko on Monday March 01, 2021 @08:38AM (#26302623)
I don't understand why so many people assume that others should pay for the services they consume.

Why should a relatively poor upstate new york taxpayer be paying 50% of the fare of some young finance bro going to work?

Also removing prices removes information. For instance the ferry costs something like $15 per rider to operate compared to around $5 for subway. With both trips at the same price to the consumer, you make the marginal rider indifferent to the two in terms of price where it would be beneficial to have that information to save money and divert resources to the more effective mode

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by x86_64Ubuntu on Monday March 01, 2021 @10:15AM (#26303484)
I don't think the flow of money is from Upstate NY to NYC. And to take your example to it's logical conclusion, we'd end up in an AnCap paradise. Why should I pay for ANY socialized good or service that I don't use. Such as roads to places I'll never go, schools my child doesn't attend, and medical procedures that I don't need?
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by bko on Monday March 01, 2021 @10:29AM (#26303636)
Size is important in that regard. I have less of an issue paying for socialized goods on a local level than I do at a much larger level. I'm willing to help a neighbor out, but less willing to help out someone on the other side of the earth. Local level is also more transparent and the officials in charge are more likely to be held responsible. I have more access to my mayor than I do my governor.

> roads to places I'll never go

Gasoline tax and toll roads are a good way of linking those who benefit to those who provide the good.

> schools my child doesn't attend

A lot of people move out of high tax neighborhoods when their kids graduate high school. I don't think school should be tied to real-estate anyway because it creates really perverse dynamics (people without money end up going to the worse funded schools). So that model doesn't exactly work well right now

> medical procedures that I don't need

I buy health insurance voluntarily and gladly pay for medical procedures that I don't need on the off chance that I need an expensive medical procedure in the future

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by devdas on Monday March 01, 2021 @08:55AM (#26302767)
After all, why should the city dweller pay for the roads being used by the upstate new yorker?
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by SilasX on Monday March 01, 2021 @08:54AM (#26302757)
Right, the better estimate of how economical transit lines are would be fares + gain in property value from the presence of the lines. (Or, to get the units right, fares/year + gain in locational rental value/year.)

Or to look at it another way: assume some genie offered to dismantle the NYC train/subway system for free. Assume you're the government and only care about maximizing revenue. Would that be a good deal? Of course not, even if the system wasn't self-sustaining from fares.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by pnutjam on Monday March 01, 2021 @10:23AM (#26303577)
Imagine if the trucking industry had to absorb the cost of the roads they damage.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by colejohnson66 on Monday March 01, 2021 @12:56PM (#26305734)
Don’t they already do that through more expensive registration fees? “Apportioned” and (sometimes) commercial plates cost more than Joe Shmoe driving a Civic.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by pnutjam on Monday March 01, 2021 @01:08PM (#26305904)
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by eqvinox on Monday March 01, 2021 @07:44AM (#26302226)
> The estimated cost of the Long Island Rail Road project,

> The competing services for infra in NYC are cabs, car pools, private buses, bike rentals, scooters, subways.

You're conflating the infrastructure with the service on top of it. The equal comparison would be railroad project to motorcar roads & bridges. And the latter also have their share of cost overrun stories...

(Also, bridges are the rare case where a ship can compete. But, well, every rule has its exceptions.)

Oh and the fact that it's (even unreasonably) expensive has no bearing at all on the argument. There ain't gonna be some competitor building their own railway line regardless, or especially since the first one was so expensive.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by rocqua on Monday March 01, 2021 @07:02AM (#26301915)
Its an interesting example, subways seem to have some minor room for competition, so the argument against privatization based on "there cannot be competition" does not quite apply.

Even here though, there is a coordination problem to ensure various companies remain mutually compatible.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by eqvinox on Monday March 01, 2021 @07:34AM (#26302156)
Competition on public transport is limited by the fact that you often need a cohesive network to get from A to B via C & D. If multiple companies cooperate on crossover ticketing and align their schedules, yes, it can work. Even more likely to work is a model where a central authority opens tenders for specific services, and transport companies can compete on that.

Then again, I don't think it's viable to build subway tracks and tunnels to compete. Even if you have space under the earth, there may not be space for more stations, and good station locations are important too.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by ethanbond on Monday March 01, 2021 @06:22AM (#26301675)
What about housing itself? There is only one building that can exist at 100 1st Ave, and its location is entirely unique/entirely monopolized.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by snidane on Monday March 01, 2021 @06:29AM (#26301715)
That's actually land monopoly problem. Ie. whoever came first to claim the land has exclusive use rights on it forever, or as long as his descendants go.

It's yet another monopoly problem even though it doesn't look like it at first glance. Each house basically sits on a piece of mlonopoly for the parcel below it, preventing others from use.

It's not much of a big deal in general, but in congested big cities, it is a problem. It's the cause of high rents (by Ricardo's law od rent).

The solution is also a kind of monopoly tax - land value tax (LVT). You pay yearly percentage of the market value. Achieving almost optimal allocation instead of current hereditary one.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by yourapostasy on Monday March 01, 2021 @07:08AM (#26301954)
> You pay yearly percentage of the market value.

Establishing "market value" is the rub. Texas for example, does not make real estate sales prices public. This has a lot of perverse effects, one of which is deep-pocketed commercial interests have pummeled public assessors until commercial property is tacitly way undervalued for tax purposes, yet is openly sold for much more than the purported tax basis.

I've heard of a system I found interesting (but alas, can no longer find a reference to link) to competitively establish tax basis on commercial real estate (I wouldn't want this on natural person owner-occupied residential). You claim whatever tax basis you want. It gets published in the open. Whoever can put up completely unencumbered cash over the barrel for that basis + 7% or more though, can purchase the property. And by unencumbered, I mean not even investor syndication. Real, natural person, outright first and only lien on the cash, absolutely no liens tolerated against the property tied directly or indirectly to the cash.

Cash goes into government-controlled escrow. Current owner has one year to pay difference on one year's worth of new imputed tax basis represented by the escrowed cash, and continue from that point forward with the new basis. If the owner comes up with it, the bidder loses 6% of the cash (or whatever the real estate industry commission structure is at that time in that locality) to the local government as commission to facilitate the price discovery. Bidder can increase bid at any time by adding to escrow account, until either current owner "sells" to bidder (and escrow releases 100% to the current owner, no commission), or bidder walks.

I haven't sat down to really pencil it out, but I'm sure if someone did they'd find a way to game such a system, since I figured it otherwise would have been put into use.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by rout39574 on Monday March 01, 2021 @09:50AM (#26303249)
Is there more "game the system" necessary than to say I have no right not to sell? This strategy is just privatizing, and then trivializing, eminent domain.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by imtringued on Monday March 01, 2021 @08:48AM (#26302703)
Isn't it possible to just make assessments for the entire block? Count the population density, commercial density, foot and car traffic and base the land value tax on those indicators.
Re:Texas electric firm files for bankruptcy citing $1.8B in ... by mschuster91 on Monday March 01, 2021 @09:29AM (#26303060)
> I haven't sat down to really pencil it out, but I'm sure if someone did they'd find a way to game such a system, since I figured it otherwise would have been put into use.

There is one major consequence: investor/VC backed/mega-rich major chains would instantly drown out family owned and small businesses that can't compete with gentrification. This is already a plague with Walmart and Amazon absolutely flattening local economies, your proposal would make it an epidemic of yet-unimaginable scale.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by yourapostasy on Monday March 01, 2021 @12:09PM (#26305055)
Whoever I found this from, they put in the "natural person" and "unencumbered" parts for exactly this reason I suspect. Bidders cannot even have any debt. Zero whatsoever. I'm guessing the one year waiting period is also for creditors to discover and nullify any potential conflicting use of cash they might want to attach? I remembered it as they wanted to zero out as much as possible all leverage from the price discovery.

Like I said, I found the entire idea of a competitive market in price discovery to establish tax basis fascinating, not the specific implementation details.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by imtringued on Monday March 01, 2021 @08:41AM (#26302654)
Housing isn't the problem here but as you said correctly, it's the land ownership that is problematic. If we assume that house owners merely rent the land then it's perfectly fine to build a private housing market since housing needs can differ drastically between citizens. Some need a big house for a large family with lots of children, others only need a studio apartment. Some people want a home workshop or a home office. The market finds a satisfying solution for everyone.

Land ownership is problematic because neighborhood improvements can be extracted via land ownership. The most effective policy against this extraction is to simply tax the land itself and thus turn it into a liability if the value of the land grows. Ideally, property taxes would be replaced with land value taxes.

If land is a liability the only reason why people would purchase it is to improve the value of the land and make it available for productive uses like renting it out to a large number of people.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by eqvinox on Monday March 01, 2021 @07:38AM (#26302183)
The fact that it's unique/monopolized doesn't mean that competition is hampered. The building (or land parcel) at 100 1st Ave does not provide a service that is ubiquitously needed by almost the entire populace.

If anything, this strengthens the argument. You can buy/rent/... a different parcel nearby, and this only affects you and your planned use of the building. But you can't switch to a different road network, and this affects everyone in their daily life.

That said, I also agree with the sibling post that this is also a problem, just of a different kind.

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by mschuster91 on Monday March 01, 2021 @09:27AM (#26303035)
> Hand the operation & maintenance out to some company or whatever, there it's possible to compete.

Oh no. Construction, operation and maintenance of electricity and other vital networks (water, gas, sewage, telecommunication) should be done by the government as a government agency with a quality of service mandate and not in form of a profit-oriented company no matter if government owned or private owned / publicly traded - because "competition" and/or a focus on costs is always going to end in price and wage dumping, cutting corners and sometimes in deathly disasters (California fires caused by cutting costs on maintenance, Flint water scandal, Texas infrastructure collaps due to un-hardened systems, ...).

Re:Texas electric firm files for bankruptcy citing $1.8B in ... by rini17 on Monday March 01, 2021 @06:52AM (#26301848)
Bore a tunnel!