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Are Passenger trains in N. America ever profitable
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<p>[quote user="schlimm"]</p> <p>My thought is that for operations, one can use the profit or not-for-profit model. Both are efficient and can produce high quality service. But if you add in trying to cover infrastructure, you need the government. [/quote]</p> <p>I worked for investor owned employers all of my working life. I spent eight years with a Wall Street Bank, four years with a Connecticut bank, and nearly 30 years with an investor owned electric utility. They were all tuned by the profit motive.</p> <p>The banks were highly competitive. The electric utility was a regulated monopoly, with relatively little competition. It behaved a lot like a government agency prior to deregulation. it was effective but not very efficient. After deregulation, it changed dramatically, in large part because of competition, and it became much more efficient. </p> <p>Profits and competition help drive efficiency and effectiveness. Without them executives and managers have little incentive to do things better, faster, cheaper. This is one of the reasons, I believe, why Amtrak is not managed very well. It does not have to be well managed to stay in business. </p>
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