Is it then true to say that privatisation has miscarried, and if it has, might nationalisation fare any better? The answer to the first of these questions may in a number of cases be “yes”, but sadly, the answer to the second is “no”. The need for private sector solutions has in fact never been greater, but the concept has suffered reputational damage and has to be reinvented in hybrid, more acceptable form for the modern age.
When markets fail use markets.
For what is it to agree that a business has failed? That it has been run badly. So, what is required? That it be run another way. And what is a market other than experimentation in ways of doing things?
Nationalisation extended many industries in Britain beyond their natural life. Keith Joseph saw this and persuaded Mrs T to divest the state of them.
It should be possible to revive some of these : coal mining without miners, super slick ship building as in Korea or the production of specialist steel.
Trouble is, govt interference, environmental regulations and high energy costs all conspire against heavy industry. We don’t even smelt aluminium in GB any more. The Germans are discovering this now, as heavy industry there is now closing .
I guess the question is really one of whether an activity should be regarded as a normal, stand-alone business, or whether it’s regarded as a ‘public good’ upon which far more valuable economic activity is based, or a matter of public protection like the military or judiciary.
Obviously public transport and the major utilities could be regarded as public goods and subject to Pigouvian subsidy to promote their beneficial economic externalities, but of course the problem then is that being protected from bankruptcy by a guaranteed income stream they gum up with bureaucracy and extortionate working practices.
How do you get the market to provide efficient, reliable public-good services? I dunno, but the Japs seem to do it quite well.
An obvious solution is to remove the regulations that prevent the establishment of new industries in the UK.
I am of course thinking of fracking. But perhaps I should consider the building of nukes as well.
I’ve just been chatting to one of my neighbours, maybe mid to late 30s, and he was telling me how pleased he was that he’d stopped going up to London on SW Trains for Christmas and that he was looking forward to them getting nationalised in April “at least the can’t be worse.
I pointed out that BR was a lot worse and he was somewhat sceptical until I pointed out: When politicians have a choice between spending money on the NHS and new trains and lower fares where do you think the money is going?
A light came on in his eyes.
It will take time but service will degenerate and fares will rise. I really don’t understand why politicians are so desperate to be responsible for a service that will never meet expectations.
Prior to the privatisation of the water system, the UK had just two beaches that met EU cleanliness standards and we were dubbed the ‘dirty man of Europe’ Around the same time we were known as the ‘poor man of Europe’ and were looking to the IMF for bail-outs.
All while nationalised industries were the norm. As already pointed out, governments run things for their benefit. Money is spent where political advantage can be gained. Economics and efficiency don’t get a look in.
Nationalisation is just private equity done by politicians and civil servants.
All the things that lefties say private equity does – asset stripping, loading balance sheets with debt, and so on, will be done to the nationalised industries by government.
But for some reason the lefties will say that it is different.
“Water and rail were arguably a step too far,”
The problem with rail is that it was never really privatised. It’s micromanaged by the bureaucrats of the state. These are the services you’ll run, this is where you’ll get your trains from, these are the fares you’ll charge, and whether you have wi-fi or a buffet car or not. It was really outsourced, like government paying an IT supplier to build some software to its specification.
It’s why you can fly cheaper sometimes. Because greedpig capitalists like Michael O’Leary would rather get £10 for a seat than nothing. The people in charge of rail don’t care. Passengers are just more work to them. There is bags of spare capacity on trains, especially in the evenings, but is rail priced like that?
Norman: ’the Japs seem to do it quite well.’
They have a homogenous and culturally polite society with little to no immigration from Third World shitholes. No wonder their public transport system works.
BiND: ’I really don’t understand why politicians are so desperate to be responsible for a service that will never meet expectations.’
Because somehow, they never are.
Julia: They have a homogenous and culturally polite society with little to no immigration from Third World shitholes.
They did. Unfortunately Kurds have established a colony in Chiba and are doing their usual Muslim thing. Apparently the Japs quite like them because they’re “modest”, etc.
Sadly, they will live to regret this.
JuliaM @ 11.37 and Norman, I have related the story of the ‘person of enrichment’ that was allowed into Japan who went on to sexually assault under age girls. The police arrested the fellow, took him into a cell and proceeded to give him a “bloody good hiding” (Bernie Grant ©). This was video’d and released…..by the police, as a warning to the rest of them.
Whether this will ultimately lead to the Japs and their ‘guests’ living in peace and harmony I seriously doubt, as it hasn’t happened anywhere else.
Addolff
The Japs still retain the death penalty.
So one may hope that if these drongos don’t or won’t learn, they’ll just be given the chop.
I hope they use tsujigiri!