Re: Amtrak lost $800 million on soda and burger sales
Author: Michael Mahoney
Date: 08-02-2012 - 18:07
This is why the "free market" advocates so often fall off the boat, and why, on a warm day in Florida, Rep. Mica's IQ rises into the low double digits.
The snack bar or diner on an Amtrak train is not like a stationary restaurant. It provides a necessary service. Travelers who would otherwise not take the train will do so if they know they don't have to carry all their own food. The snack bar is therefore a loss leader that serves to bring paying passengers aboard the train. If the price of the food were raised to cover the total cost (however calculated) of providing it, it would be so expensive no one would buy it.
Any service added on for free is judged the same way. How about this? "Rep. Mica discovers that supermarkets are giving away free parking." Or, "Rep. Mica proposes that government office buildings charge for the use of elevators."