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Income and wealth inequality are near their highest levels in the past hundred years

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Rising Phoenix
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Post: #21
RE: Income and wealth inequality are near their highest levels in the past hundred years

Helsworth Wrote:
I think you mean only one (common) pipe system. You can have more than one private companies handling maintenance and expansion. The municipality provides the funds though for those private companies to operate - in part via local taxes and via national government spending. Private business, households, and the public institutions pay for the water/sewer bill/s.

Yes. You can only have one company filling those pipes with drinking water. To have more than one company providing water you would need more than one pipeline, which would create enormous inversion costs for only marginal gain (i.e.: Even if a company managed to build the whole pipe system needed to compete with the existing water company, it would still take years for the profits to pay back the infraestructure costs and turn profits).

03.12.2014 21:42
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Helsworth
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Post: #22
RE: Income and wealth inequality are near their highest levels in the past hundred years

Rising Phoenix Wrote:

Helsworth Wrote:
I think you mean only one (common) pipe system. You can have more than one private companies handling maintenance and expansion. The municipality provides the funds though for those private companies to operate - in part via local taxes and via national government spending. Private business, households, and the public institutions pay for the water/sewer bill/s.

Yes. You can only have one company filling those pipes with drinking water. To have more than one company providing water you would need more than one pipeline, which would create enormous inversion costs for only marginal gain (i.e.: Even if a company managed to build the whole pipe system needed to compete with the existing water company, it would still take years for the profits to pay back the infraestructure costs and turn profits).

Indeed. There's only one pipe system, one sewer system, one electric grid. The practical on these particular issues simply kills the competition theory. There's one universal distribution medium. Where people get the water and electricity, that's another story. All water and energy producers should have fair and equal access to the pipe and grid systems. Like always, one needs that 3rd party for the circuit to work - and that 3rd party is the public authority.


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04.12.2014 15:10
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