Posted on 06/09/2010 6:19:25 AM PDT by Willie Green
“Although government may be funding passenger rail systems, it is actually the private sector who will be building it”
Our government buys military equipment from an assortment of private companies, but that doesn’t make our military a capitalist enterprise.
When the government expends public funds to build and operate an enterprise, that is a socialist enterprise, no matter who the equipment is purchased from, and no matter whether you call it “infrastructure” or not.
The case where the government only offers subsidies to private business for the construction of an enterprise is less clear. If there are also government subsidies for the ongoing operations of the enterprise, then it is economically equivalent to a socialist enterprise.
Some socialist enterprises, like the Erie Canal or the New Jersey Turnpike, may prove to be very successful; but in general it is an unproductive way to organize an economy. In general socialist enterprises are sinkholes that suck up public money, and stay alive due to political influence rather than economic efficiency.
Our government buys military equipment from an assortment of private companies, but that doesn’t make our military a capitalist enterprise.
Oh, so now you're going to rant and rave about our military being "socialist"????
Some socialist enterprises, like the Erie Canal or the New Jersey Turnpike,
???
The Erie Canal and New Jersey Turnpike were "socialist enterprises"????
ROTF-PIMP-LMAO!!!! That's a hoot!!!
I bet you must think that the Grand Coulee Dam was a pinko-commie plot... LOL!!!
"Josef Stalin made us build it"
Hahahahahahahahahaha!!!!
Because railroads came along and took their business.
Railroad building was often subsidized and the railroads worked well -- until regulation and motor transport did them in.
Whether we need to subsidize railroads now is another question, but historically government canal or railroad or highway building has had a positive impact on economic development.
“Oh, so now you’re going to rant and rave about our military being “socialist”????”
I don’t rant and rave; I’m not nearly as talented at it as you are.
What you say is interesting. The railroad boom that started about 1830 may have contributed to the 1837 crash by adversely affecting canal revenues. In a similar way the automobile boom of the 1920s contributed to the great depression by adversely affecting the horse farm economy.
Which still suggests to me that government should be reluctant to make economic investments because it is difficult to pick a winner. As with canals, it is easy to get the timing wrong and fund yesterdays winner and todays loser ... like passenger railroads!
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