It has been said for many years that private enterprise manages much better resources the company public. Consider if they're right.
The government hires and pays a construction company to asphalt a highway. A ve3z term work, the construction company creates a subsidiary to bid in an auction to exploit the concession, as has built the highway creates a precedent, and usually tend to hold the position of an armored concession contract.
The construction company through its subsidiary pact with the government a number of conditions. These conditions tend to benefit private enterprise getting the benefits and if you have lost these are absorbed by the government. If the government wants to terminate the contract before completion, as agreed, the concessionaire should receive the full estimated losses that would pose to the end of the current contract amount.
PRIVATE ENTERPRISE IN TRANSPORT
Private transport company to survive in modern times where the economy is not exactly optimal investment needs subsidies from the state but its intention is to dismiss employees. Use this threat to get concessions and subsidies. It is blackmail in the making.
Public transport company can raise or lower the ticket price will not be lost, while private companies.
Public transport companies have a distinct status of others. This status is made by the state, the autonomous community if any and town hall.
If the company is local, the percentage is as follows: 50% participation by the municipality, 25% of the autonomous community and state government remaining 25%.
What if private enterprise does not have the concession of exploitation?
All investment goes to the state, and is the state that 100% of the profits, also all losses (this already is happening) would benefit takes, would lower unemployment, would increase consumption, there would be inflation, would raise living standards for the population.
So my opinion is that private enterprise creates deficits, impoverishing citizens and creates precarious jobs. And you should not opt for any public auction and then to rich at the expense of all.
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