Private companies were able to build an entire network of railways in the US. But now, with all the new technology the modern world is able to offer, both companies and government struggle to build even a single railway. how is this even possible?
In: Economics
Well, in those days communities would have gladly welcomed the rail lines (compared to the transportation available). It would have created immense wealth for the communities. Procuring the land wouldn’t have been an issue. The citizens and the local governments would be falling over themselves to get a rail line.
Today, quite the opposite. City residents would oppose this by lawsuits, zoning laws, regulations, restrictions on use etc etc. The legal fight before a single foot of line was laid down would cost many millions and take years.
The technology is not the issue, even the cost isn’t insurmountable. What businesses shun the most is uncertainty. A guaranteed project with 2% profit margin is doable. A project that requires billions up front, uncertain timing and with a high chance of cancellation etc – no one would do it.
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