A Note For Chas

Sometimes, there are limits.

A post, over at Chas' Compilations, sparked the comment below.

When I attempted to post it as a comment there, Blogger got upset.

Had a conversation with a fella who wanted to replace the current, privately-held utility with a public utility.

I asked him what the difference would mean to either him or to me. He pointed out that he believed the PUD would be able to produce electricity more cheaply, since there wouldn't be a profit motive.

Okay. But where are you going to find the funds to replace or repair equipment that wears out, or build more generating capacity?

Easy. Sell bonds! (Everything is so easy!)

But who, I asked, would buy the bonds? And what rate of return would a bondholder need to have offered, in order to entice his investing in your bond, rather than some other instrument of investment? And, if you're an unprofitable enterprise, what is your ability to finance your debtor obligations? And who is responsible for making the decisions of the PUD, the Board? An executive director? And, how much do you pay the Board, Exec, and the other administrative and other personnel necessary to actually do the work needed to supply electricity to homes and businesses in your district? And aren't you simply trying to transfer all of that economic activity out of the private sector, in order to achieve a goal that might be praiseworthy--of sorts--but is actually just create liabilities for people who may not wish to have those liabilities placed on their backs? Why should I be responsible for your PUD? When, today, all I have to do is pay my utility bill, and I get electricity?

Social justice, was his answer. It isn't right that large corporations make profits on the backs of the little guy. I offered that it didn't seem right to burden the little guy with the liabilities of a public corporation, when that service is already being provided without that burden.

So, I guess the view on the Left is that a pubic corporation is okay, but a private corporation is bad. NPR? Public corporation. NBC? Private. Which one is good? And why? Does NPR issue bonds?

Well, the chickens are coming home to roost, and the states, in my opinion will not be able to use bankruptcy in order to avoid the oncoming financial disaster. So, who will be made to pay? The bondholders or the public employees? Which group is evil, which group is good?