but they started out private and went broke
Reader comment on: Subway Salaries
Submitted by lyle (United States), Nov 20, 2017 09:50
Recall the NYC subways started out private and went broke, just like most transit systems in the US. If you look at the idea it would price folks out of using the subway completely. The amount of investment required for example to modernize the subways would be enough that no sane banker would loan the companies involved any money.
Given the historical story of transit starting out private, and going bust nationwide why is it thought anyone would be foolish enough to get into the business again?
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The Future of Capitalism replies:
Plenty of businesses go through boom and bust cycles without being taken over entirely by government. Plenty of freight railroads, banks, farms, mining companies, airlines, real estate firms, etc etc. One way to look at it would be if the State of NY took what it is spending on the MTA to operate the subways (or various lines) and offered that amount to other bidders to see if they could do a better job. If they can do it better for less money, split the amount saved between the state and the private operator.
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