Convicted One Run a google on the topic of "privatized profit and socialized losses" and you will better understand
Run a google on the topic of "privatized profit and socialized losses" and you will better understand
Well, several things came up on the google. Is this what you mean?
http://www.prophetwithoutprofit.com/tag/tarp/
To me, Phillips can not possibly honestly write on how increased regulation will not harm the railroads because the specific purpose of such regulation will be to divert money from the railroads. That would be "harming the railroads."
The US railroads are a true industrial success story. The "Union Guy" who is the current head of the Federal Railroad Administration has called the US rail freight system "The Envy of the World." The FRA has called the US freight rail system the most efficient and safest in the world.
The railroads are a largely a self supporting and self financing industry that pays its own way, generates wealth for the nation's people, requires no significant subsidies (despite what Zardoz says), pays a union work force well, and pays taxes instead of using taxes. So, naturally, Phillips wants the government to mess with that and he will make excuses for such government aciton.
Here it is as I see it. Anything that is produced, mined or manufactured must move through a channel of distribution to the end users. This channel can consist of the manufacturer, miner, grower, whatever; the "middlemen" who handle the product along the way, and the final retailer who delivers the finished thingy to the ultimate consumer. Each of these guys gets a cut of what the ultimate consumer pays. The railroads are often a part of this channel and they get paid for what they do.
Channel members are always, always, always fighting over who gets how much. When they can't get their way they run to the government and cry "No Fair, the other guy is getting too much and I'm getting too little." A wise government would say: "Go away boys, you bother me." A politician seeking votes will promise to divert the money to whomever will give him/her the most votes. If the politician is successful it will make things worse, except for the fact that he/she may get reelected.
Phillips "believes" in government. So he'll seek to justify their actions. But more regulation will hurt the railroads and the nation's economy (that B us). It can't help but hurt.
"I'll save the details for a future column." -- Don Phillips, in Sept. Trains.
Don has been promising periodically for at least five years to tell us why railroads have nothing to fear from relentless Democratic efforts in the Congress to re-regulate.
It's past time for him to deliver, so guys like Jim Young, Matt Rose and all us stockholders can relax.
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