Post
Topic
Board Politics & Society
Re: So I got pulled over for speeding...
by
myrkul
on 22/08/2012, 23:34:29 UTC
1) That's why we have human rights and lawmakers who are supposed to act in the best interest of the people - to protect people against unfair contracts like that.
2) Your plan would introduce vast inefficiencies (way worse than the government) into road building and maintenance.  If people are duplicating roads to compete for lower prices, they are putting in way more capital expenditure than is necessary.  The reason there is a forced monopoly on things like roadways and utilities is because it doesn't make sense financially to have multiple companies competing for the same thing - the recovery of capital outlay would require prices much higher than is seen today.  Instead of me paying $10/month in local taxes to maintain the roadways near me, I might be paying $200 in fees throughout a month of driving on some cobbled-together private road system.

1) "supposed to"... except the very existence of those lawmakers and the system which supports them is an unfair contract like that.

2) Only if someone were to do something like this, blocking off roads, rather than running them for max efficiency. If it didn't make sense for there to be multiple companies competing, there wouldn't be a need for a forced monopoly, one would develop naturally.
1) I disagree.
2) But that's exactly my point - people WOULD block off roads (until paid a handsome sum), or leave the road in a state of disrepair BECAUSE of the local monopoly.  And as soon as they saw another competitor try to build a secondary route, the original road owner would lower their fees and repair their roads so that said competitor may as well not even continue building - it wouldn't end up being profitable for him.  The existing road would be willing to be a temporary loss leader to drive out the competition, then resume the price-hikes and lackluster upkeep until the next competitor tried to enter the market.  Now, if a competitor decided to continue building the second roadway anyhow, then the local market would drive the price down to a reasonable fee close to what we might be paying for road upkeep right now, but spread across two roads.  In other words, each road owner would then only be receiving half of the fees necessary to maintain their roads.

It just wouldn't work, at all.  There is very sound reasoning behind forced utility monopolies with regulated pricing.
1) Then convince me.
2) Why do you assume that people would be paying for roads they don't use?