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skort | 6 months ago

Why are we letting private companies own public infrastructure?

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supertrope|6 months ago

Politicians lack the will to push for public utilities. That requires asking voters to go along with the government taking on financing, planning, operations, customer service, and being the bad guys who raise prices. It's easier to point to companies as the bad guys who raised electric rates, likely sparked a wildfire, or are taking so long to fix an outage.

AnthonyMouse|6 months ago

The problem is this is set up as a dichotomy. Either you have privately owned infrastructure (and then a private monopoly), or make the utility company a government entity which then becomes an unaccountable bureaucracy captured by public sector unions etc.

Whereas the better thing to do is have the government own the physical plant (utility poles and conduits etc.) and then hire private contractors -- large numbers of small entities, not small numbers of large entities -- to do all the actual work of operating and maintaining it.

Make each contracted role simple and fungible so that none of them are too big to fail and they're all in competition with each other.

You don't want a public monopoly. You don't want a private monopoly. But who says those are the only options?

nine_k|6 months ago

It's either owned by a private company, or public (owned by municipality or similar).

mensetmanusman|6 months ago

Government bureaucrats are among the hardest to fire, because they rate their own excellence.

Knowing this, there is probably a way to make things better…

pstuart|6 months ago

Because our political system is rigged to allow the wealthy to make the rules.

danielmarkbruce|6 months ago

Because public operation of infrastructure has often not gone well. And no matter who owns it, there is a cost of capital.

dghlsakjg|6 months ago

The interstate road system in the US is world class. Airports and ports are publicly owned, and seem to function very well in most cases. Education including the infrastructure and buildings is managed incredibly well in many jurisdictions. There are many, many examples of well run public infrastructure. We only notice the failures because 1. they are an easy punching bag 2. they are noteworthy because we expect them not to fail.

It is hardly a maxim that public operation of infrastructure is incompetent, and I would argue that "often" is not the right word.

BLKNSLVR|6 months ago

This feels like Churchill's democracy quote applies:

"It has been said that democracy is the worst form of Government except all those other forms that have been tried from time to time"

It has been said that public operation of infrastructure is the worst form of operation of infrastructure except all those other forms that have been tried from time to time.

DannyBee|6 months ago

It's gone fine. It's always fun to hear about the wonders of privatization where everyone conveniently ignores that the vast majority of private businesses fail miserably. Over 50 percent in five years. Mostly due to mismanagement of money, the thing they are supposed to be better at. The rate is even higher (80-90 percent) if we were to look at small businesses.

They do have better PR though.

lenkite|6 months ago

> Because public operation of infrastructure has often not gone well.

Kindly define "not well" compared to privately owned infrastructure.

cma|6 months ago

You can have competing operators bid for the contract to operate without owning.

sensanaty|6 months ago

Could you list some examples of where public infra hasn't "gone well"? Because from my own view of things it's the exact opposite, whenever anything became privatized that shouldn't have been (rail, water, electricity, public transportation, healthcare) it inevitably follows the same churn as all the other things getting enshittified continuously.

The national railway in the Netherlands is a great example of this. They've privatized but with gov't subsidies, yet there's less trains, less people getting moved by the remaining trains, ticket prices skyrocketing YoY, worse service, rail workers getting shafted and basically being forced to go on strike in order to improve conditions. They're (NS) a monopoly too and handle something like 95% of all rail traffic within the Netherlands.

I believe the UK is going through a similar issue, where their railways are now privatized and in turn it's lead to increasingly worse service despite there being plenty of competition in the market in the form of many rail companies.

This lolbert fantasy of the "free" market being good for literally everything, including critical public infrastructure is a complete farce.

Spooky23|6 months ago

Municipal bonds are the cheapest capital available anywhere.