* Railways are like veterinarians
Topics: Regulation
26 Jul 2010
From: Ervan Darnell
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"Amtrak=92s passenger services are sparse compared with Europe=92s. But
America=92s freight railways are one of the unsung transport successes of t=
he
past 30 years. They are universally recognised in the industry as the best
in the world.
Their good run started with deregulation at the end of Jimmy Carter=92s
administration.....Before deregulation America=92s railways were going bust=
.
The return on capital fell from a meagre 4.1% in the 1940s to less than 3%
in the 1960s. ... Giving the railroads the freedom to run their business as
they saw fit led to dramatic improvements. The first result was a sharp ris=
e
in traffic and productivity and fall in freight costs." [1]
The highly subsidized Amtrak is a failure. The de-regulated trains are
working just fine. Of course. Freight trains, like veterinarians, aren't
considered important enough, with human lives not directly at stake, to
warrant government oversight. The result is they do a better job for less
money. As crass as it sounds, we should treat health care like freight
instead of like Amtrak.
----------------------
[1]
http://www.economist.com/node/16636101?fsrc scn/fb/wl/ar/americanrailways=
,
7/22/10
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"Amtrak=92s passenger services are sparse compared with Europe=92s. Bu=
t
America=92s freight railways are one of the unsung transport successes of=
the past 30 years. They are universally recognised in the industry as
the best in the world.
Their good run started with deregulation at the end of Jimmy Carter=92s
administration.....Before deregulation America=92s railways were going bus=
t. The return on
capital fell from a meagre 4.1% in the 1940s to less than 3% in the
1960s. ... Giving the railroads the freedom to run their business as they s=
aw fit
led to dramatic improvements. The first result was a sharp rise in
traffic and productivity and fall in freight costs." [1]
The hig=
hly subsidized Amtrak is a failure. =A0The de-regulated trains are working =
just fine. =A0Of course. =A0Freight trains, like veterinarians, aren't =
considered important enough, with human lives not directly at stake, to war=
rant government oversight. =A0The result is they do a better job for less m=
oney. =A0As crass as it sounds, we should treat health care like freight in=
stead of like Amtrak.
----------------------
[1]=A0
ode/16636101?fsrc scn/fb/wl/ar/americanrailways">http://www.economist.com=
/node/16636101?fsrc scn/fb/wl/ar/americanrailways, 7/22/10
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