Re: To Subsidize Or Not To Subsidize-Cost Benefit????
Author: BOB2
Date: 09-11-2012 - 18:13

Some of us had to take the hard math in our majors. In a perfectly competitive full information free market system with no barriers to entry and no externality costs nothing would have to be theorectically "subsidized". Unfortunately, we don't live in that ideal world, we live in the real world, without the benefits of truly "perfect" competition, with real externality costs, with real differences in competitive advantage, such as degree of substituitability or monopoly (which is often the case in viable transporation alternatives), and with incomplete information, and plenty of resultant market disttortions.

Since this is the state of the real world, we often use the math of cost benefit, and modern Marshallian analysis of marginal cost/marginal benefit, to assess the cost minimizing point of maximum benefit or utility. This is the same calculus as profit maximization, and allows us to identify where a subsidy is more likely to be justified.

It is always a social decision to sacrifice resources for various outcomes that the market, that due to these marekt "imperfections, may or may not supply things like "Amtrak" in adequate amounts. So our preferences do count, but it does not have to be just popularity contest, there are ways to make these decisions sensibly, with positive benefits, at a minimum subsidy level necessary to provide the service. We just live in a time where we often appear to wallow in willful ignorance and choose not to.



Subject Written By Date/Time (PST)
  To Subsidize Or Not To Subsidize Just Me 09-11-2012 - 17:04
  Re: To Subsidize Or Not To Subsidize Zephyrus 09-11-2012 - 17:41
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? BOB2 09-11-2012 - 18:13
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? George Manley 09-11-2012 - 19:09
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? Oh, My Aching $$$$$ 09-11-2012 - 19:25
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? Brian 09-13-2012 - 11:53
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? Non-Partisan, Non-Party 09-13-2012 - 10:04
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? curious 09-13-2012 - 15:53
  Re: To Subsidize Or Not To Subsidize-Cost Benefit???? OldPoleBurner 09-13-2012 - 17:47
  Re: To Subsidize Or Not To Subsidize David Smith 09-11-2012 - 19:13
  Re: To Subsidize Or Not To Subsidize Nate 09-11-2012 - 20:34
  Re: To Subsidize Or Not To Subsidize Alfred Doten 09-11-2012 - 21:59
  Re: To Subsidize Or Not To Subsidize Mailbags 09-11-2012 - 23:34
  Re: To Subsidize Or Not To Subsidize SP5103 09-12-2012 - 10:52
  Re: To Subsidize Or Not To Subsidize Phoebe Snow's Boyfriend 09-12-2012 - 19:40
  Amtrak is the problem, not subsidies Mark 09-12-2012 - 02:36
  Re: Amtrak is the problem, not subsidies ejchristiansen 09-12-2012 - 05:30
  Re: Lack of Effective Leadership is The Problem- BOB2 09-12-2012 - 06:59
  Re: To Subsidize Or Not To Subsidize AMTRAK is not flexable enough 09-12-2012 - 11:09
  Re: To Subsidize Or Not To Subsidize Alfred Doten 09-12-2012 - 11:46
  Re: To Subsidize Or Not To Subsidize MG42 09-15-2012 - 17:03


Go to: Message ListSearch
Subject: 
Your Name: 
Spam prevention:
Please, enter the code that you see below in the input field. This is for blocking bots that try to post this form automatically.
       **  **     **  ********    ******   **       
       **   **   **   **     **  **    **  **       
       **    ** **    **     **  **        **       
       **     ***     ********   **        **       
 **    **    ** **    **     **  **        **       
 **    **   **   **   **     **  **    **  **       
  ******   **     **  ********    ******   ******** 
This message board is maintained by:Altamont Press
You can send us an email at altamontpress1@gmail.com