Re: [OPE] Railways

From: glevy@pratt.edu
Date: Tue Jun 10 2008 - 11:00:43 EDT


> The problem is that the high organic composition of capital in
railways 
> means  that they are likely to earn a low rate of
profit and thus be 
> unattractive to  private firms unless
these get huge subsidies as in the UK. 


Hi Paul
C:

That's why - if rail has a future under capitalism - it must
be produced as a 
public good. The problem, though, is that
states have been moving in the
opposite direction in recent years:
privatization and deregulation.  And states
don't want to
increase taxes or borrow to expand rail services (for political 
reasons) . In the US, this has led to the gradual 
deterioration 
of commuter rail systems and (simultaneously)
higher ticket prices. They
would like to get out of the commuter rail
business altogether, but that not
being possible, they wish to shift
the costs to (mostly working class) consumers.
(Something very
similar has taken place here with public universities.)

In
solidarity, Jerry


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