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robertogreco : self-drivingcras   1

Google cars versus public transit: the US’s problem with public goods | ... My heart’s in Accra
"There’s something very odd about a world in which it’s easier to imagine a futuristic technology that doesn’t exist outside of lab tests than to envision expansion of a technology that’s in wide use around the world. How did we reach a state in America where highly speculative technologies, backed by private companies, are seen as a plausible future while routine, ordinary technologies backed by governments are seen as unrealistic and impossible?

The irony of the Google car for my circumstances is that it would be inferior in every way to a train. A semi-autonomous car might let me read or relax behind the wheel, but it would be little faster than my existing commute and as sensitive to traffic, which is the main factor that makes some trips 2.5 hours and some 4 hours. Even if my Google car is a gas-sipping Prius or a plug-in hybrid, it will be less energy efficient than a train, which achieves giant economies of scale in fuel usage even at higher speeds than individual vehicles. It keeps me sealed in my private compartment, rather than giving me an opportunity to see friends who make the same trip or meet new people.

There’s a logical response to my whiny demands for an easier commute: if there were a market for such a service, surely such a thing would exist. And if train service can’t be profitably provided between Pittsfield and Boston, why should Massachusetts taxpayers foot the bill for making my life marginally easier?

This line of reasoning became popular in the US during the Reagan/Thatcher revolution and has remained influential ever since. What government services can be privatized should be, and government dollars should go only towards services, like defense, that we can’t pay for in private markets. As the US postal service has reminded us recently, they remain open during the government shutdown because they are mandated by Congress to be revenue neutral. Ditto for Amtrak, which subsidizes money-losing long distance routes with profitable New England services and covers 88% of expenses through revenue, not through government support. Our obsession with privatization is so thorough in the US that we had no meaningful debate in the US about single payer healthcare, a system that would likely be far cheaper and more efficient than the commercial health insurance mandated under the Affordable Care Act – even when governments provide services more efficiently than private markets, the current orthodoxy dictates that private market solutions are the way to go.

The problem with private market solutions is that they often achieve a lower level of efficiency than public solutions. Medicare has tremendous power to negotiate with drug manufacturers, which brings down healthcare costs. Private insurers have less leverage, and we all pay higher prices for drugs as a result, especially those whose healthcare isn’t paid for my a government or private organization and who have no negotiating power. The current system works very well for drug companies, but poorly for anyone who needs and uses healthcare (which is to say, for virtually everyone.)"



"This unwillingness to consider the creation of new public goods restricts the solution space we consider. We look for solutions to the crisis in journalism but aren’t willing to consider national license models like the one that supports the BBC, or strong, funded national broadcasters like NHK or Deutsche Welle. We build markets to match consumers with health insurance but won’t consider expanding Medicare into a single-payer health system. We look towards MOOCs and underpaid lecturers rather than considering fundamental reforms to the structure of state universities. We consider a narrow range of options and complain when we find only lousy solutions."
government  infrastructure  politics  rail  transportation  ethanzuckerman  trains  googlecars  cars  self-drivingcras  2013  publicgoods  commuting  privatization  crowdfunding 
january 2014 by robertogreco

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