Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10 beta 3/9/83; site grkermit.UUCP
Path: utzoo!linus!genrad!grkermit!chris
From: chris@grkermit.UUCP (Chris Hibbert)
Newsgroups: net.politics
Subject: Re: State run enterprises
Message-ID: <432@grkermit.UUCP>
Date: Tue, 21-Jun-83 10:09:14 EDT
Article-I.D.: grkermit.432
Posted: Tue Jun 21 10:09:14 1983
Date-Received: Wed, 22-Jun-83 00:17:22 EDT
References: <2029@tekmdp.UUCP> <131@tty3b.UUCP>
Organization: GenRad Inc., Concord, MA
Lines: 19

In regards to tty3b!mjk's comment on Jon White's comparison between highways
and railroads.

   "This is NOT an argument against government subsidy.  I'm just pointing
    out that subsidies exist everywhere, so it's ridiculous to argue
    that railroads should die if they `can't survive in the marketplace.'"

Jon White's comment may not have been a definitive argument against subsidy,
but that doesn't imply that there isn't one.  

The fact that there are subsidies running throughout our transportation
system likewise doesn't make the argument ridiculous.  It just makes the
problem of creating a market solution more difficult.  In order to see if
the railroads will survive we'll have to deregulate and stop the subsidies
systematically throughout the transportation system.  I would still claim
(like Jon White did) that the railroads (and all other forms of
transportation) should die if they can't survive in the marketplace.  I will
just add the stipulation that that implies that I favor the creation of a
free market in transportation.