Re:Japan's government plans to encourage 4-day workweek, but...
by corty on Monday June 21, 2021 @05:07AM
(#27577488)
That railway example is just a plain market failure, and an uncorrectable one at that. Markets only work under certain conditions, very important among those: absence of monopoly, monopsony and limitations that work to the same effects. A privatized rail network is still the only rail network in the country or region, so still a monopoly. If you hack it to bits and split it up too much, it will be useless, connectivity is paramount in that business. If you leave it as a large network (or several large networks) it will be a national or regional monopoly. Having only the government pay is a monopsony. Limiting building new stations and tracks (which the government will have to do at some point, if real estate prices don't) will also prevent competition. So having a functioning rail market is impossible, therefore any argument about market mechanisms involving railways (or roads, water, gas and electricity distribution) is nonsense: Those can never be proper free markets.
That's not always true. When a rail network gets privatized, the argument is that the market will make sure it's a good service still. But they are usually paid by the government, not the patrons. The commuters vote becomes negligible, and the rail network has every incentive to optimize for a minimum viable network that meets their government set targets while the service gets worse and worse in all other metrics. Seats are shittier, service is less clean, graffiti stacks up, railstock gets rickety etc.