[!@#$%!]

Originally Posted by demonrail666

That makes sense within the context of a highly competitive market but what about the private rail company that has a monopoly on a certain route (arranged by agreement with other rail companies on other lines) that lets it cancel trains or hike fares as and when it wants to and still make huge profits because it has an effectively captive consumer base, made up largely of commuters, who aren't so much willing to pay for their service as forced to, because they effectively have no realistic alternative? This is the capitalism that I have a problem with, not the guy who sells hot sauce.

ah, captive markets...

those usually don’t last without government support, do they?

i mean, i get that there’s a cartel in your example, and a rail line is (sort of) a natural monopoly, but what prevents an entrepreneur from launching a more convenient bus or van line that runs along the same lines as the train, and defeats them, or at least forces the train lines to lower prices?

the cartel formation is rent-seeking behavior that allows them to raise prices without added benefit to the public.

in a market economy we value public service through competition. this is why competition is sort of the supreme value. yes there are barriers to entry for the public transportation business, but if the government is promoting rent-seeking behavior that’s where the real problem comes with “the rich”, or with any group that seeks special treatment and protection from competition.

on the other hand, 20 years ago in the u.s. it took a family about 31 weeks of income to purchase a new vehicle. today the average is 21 weeks of income, i think i read. ("wage stagnation," whatever).

so through competition and innovation cars have become cheaper, safer, and more fuel-efficient. maybe at this price point it could beat the train? i don’t know your train prices or car prices or other options. vote with your pounds.

but anyway without the government propping up a cartel that does not benefit the customers, and limiting consumer options, it’s hard to see how this cartel would endure.