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Why Indian Railways hiking fares is LOUSY GOVERNANCE!

Frankly, I find the 'good governance' logic behind Indian Railways hiking their fares pathetic! Good governance is biting the bullet and hiking fares so Indian Railways can stop bleeding!?

You must be joking!

Good governance is government not running businesses, because if they do you can pretty much be assured they will run it sans efficiency (read, high cost), and highly mismanaged (read, lousy products and services to consumers). Why? Because they will be monopolies run by the state with zero accountability. Why no accountability? Simple, it ain't their capital they are burning, its the taxpayers', and pray who in government answers to taxpayers?

So then what can be done for better governance?

Simple. Get the government out of business, and foster free markets that bring with it competition (read, also end crony capitalism). What happens then? Products and services get better for consumers, and prices go down! Why? Because firms will compete with each other for consumer patronage, and the only way they'll get that patronage is when they better their offerings, and lower prices? How will they do that? By upping efficiency and focusing on creating value for consumers (none of which the Indian railways does).

Don't believe me? Look around you, and at you. The clothes you wear, the phones you use, the cars and bikes you drive, the TV you stare at, the washing machine that does a superlative job, the tablet that lets you work while mobile, the accessories that you adorn, the schools your kids go to, the medicines you pop when you are ill (the list is numerous),.... have only gotten better, and cheaper (cost to you, relative to your income)!

Why?

'Cos it ain't government firms that make any of those! Its made instead by private firms that compete in a marketplace.

Still don't believe me? God help us then. 

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