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 You Asked for It!
» Road signs..   2004-09-09 13:22 TN

This is just not true, and the proof is all around you. Are you saying there is never a second doctor's surgery in a small country town? Never a second airport in a large city? Never a second pub at a popular tourist resort? Duplications of infrastructure - all of them, and they market just provides it.

None of the industries you mentioned are declining cost industries. Again, I repeat, economics recognises that there are significant differences between the market for roads and the market for ice-creams (or doctors or pubs). I have never argued against competition in road provision on the basis that it could entail the duplication of infrastricture. I have arged against it primarily on the basis that it could entail the wasteful duplication of infrastructure (or result in private monopoly).

There is an old joke about the Soviet Union

There is also a saying that capitalism is the exploitation of man by man; commumism is the reverse. However, while anecdotes about some of the horrendous things that happen at either extreme of the government intervention spectrum may have polemical value, I generally try not to rely on them to argue cases about appropriate public policy.


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