Someone remarked that TKL prefers socialism, but he prefers capitalism.
We should not make decisions based on labels. Instead, we should look at the issues based on facts.
I prefer an approach that produces a better outcome. In some cases, a socialist approach achieves a better outcome; in other cases, a capitalist approach is better.
What is the socialist approach? Basically, this approach involves state ownership of the means of production.
Let us look at what happened in the UK. When Margaret Tatcher was the prime minister, she privatised many industries previously run by the state - for example, the railway, water and electricity.
Did the private ownership produce better results? Did they reduce the cost to consumers and achieve better quality?
Apparently they did not. The private owners cut down on the maintenance and quality. They wanted to increase their profts. Consumers paid more and get a poorer quality of service. I am not sure if I have described the situation correctly.
I read that the Labor Party had promised to re-nationalised the railway, water and energy when they become the next government. Apparently, this is well supported by the public.
I was recently in New South Wales, Australia. I took the train from the airport to Sydney, a distance of 10 km and paid a fare of $18. It was operated by a private company. I took a train from Sydney to Gosford, Central Coast. The distance was 78 km and the fare was $13. It was operated by the state.
The state government realised that it was a mistake to allow the private operator to build and operate the airport link. They wanted to buy back the line, but the private owner wanted to extract a high price.
In Singapore, we saw what happened with our SMRT. When it was under private ownership, it cut down on the maintenance of the lines to reduce cost. This caused the frequent breakdown of the MRT service. The government had to de-privatise the SMRT.
There are many situtations where private ownership leads to bad outcomes. They are caused by the profit motive. In these cases, state ownership produces a better outcome.
But there will be other situations where private ownership produces a better outcome.
We have to keep an open mind. We have to make decisions based on facts, rather than on labels.
Tan Kin Lian
We should not make decisions based on labels. Instead, we should look at the issues based on facts.
I prefer an approach that produces a better outcome. In some cases, a socialist approach achieves a better outcome; in other cases, a capitalist approach is better.
What is the socialist approach? Basically, this approach involves state ownership of the means of production.
Let us look at what happened in the UK. When Margaret Tatcher was the prime minister, she privatised many industries previously run by the state - for example, the railway, water and electricity.
Did the private ownership produce better results? Did they reduce the cost to consumers and achieve better quality?
Apparently they did not. The private owners cut down on the maintenance and quality. They wanted to increase their profts. Consumers paid more and get a poorer quality of service. I am not sure if I have described the situation correctly.
I read that the Labor Party had promised to re-nationalised the railway, water and energy when they become the next government. Apparently, this is well supported by the public.
I was recently in New South Wales, Australia. I took the train from the airport to Sydney, a distance of 10 km and paid a fare of $18. It was operated by a private company. I took a train from Sydney to Gosford, Central Coast. The distance was 78 km and the fare was $13. It was operated by the state.
The state government realised that it was a mistake to allow the private operator to build and operate the airport link. They wanted to buy back the line, but the private owner wanted to extract a high price.
In Singapore, we saw what happened with our SMRT. When it was under private ownership, it cut down on the maintenance of the lines to reduce cost. This caused the frequent breakdown of the MRT service. The government had to de-privatise the SMRT.
There are many situtations where private ownership leads to bad outcomes. They are caused by the profit motive. In these cases, state ownership produces a better outcome.
But there will be other situations where private ownership produces a better outcome.
We have to keep an open mind. We have to make decisions based on facts, rather than on labels.
Tan Kin Lian
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