To a Point Jeff

Jeff Randal's good on what ails the railway system today: yes, the privatisation didn't work as hoped, vertical integration might indeed correct some of the problems. However:

Faced with a demand for rail that way outstrips supply, its policy is to allow train companies to jack up fares on services that are already among the most expensive in the world.

What else does anyone expect them to do?

Indeed, what else can you do when demand outstrips supply? For the point really is that demand only outstrips supply at a price: change the price and you change the quantity demanded.

Now, yes, you can attempt to increase the supply, and indeed we are, wih such things as Crossrail and so on: but as we've all noted, this both takes a long time and is crushingly expensive.

Seriously, what else does anyone expect them to do? Note that the trains are crowded, thus we must cut prices so as to, umm, increase the number of people who want to travel on them?

Actions: Print this article   |   Email to a friend   |   Permalink   |   Comment

Post this entry to:   del.icio.us | Digg | Newsvine | NowPublic | Reddit

Advertisement

Spectator Business | Apollo Magazine

Corporate | Advertising | Privacy | Terms

Spectator, 22 Old Queen Street, London, SW1H 9HP

All Articles and Content Copyright ©2008 by The Spectator | All Rights Reserved