Quote:
Originally Posted by electricron
On unsubsidized trains, fares must pay the costs to build and run the trains or the privately owned company loses money and eventually goes bankrupt.
While subsidized trains makes fares low - sometimes to zero - everybody pays for it with some form of taxes whether you take the train or not. All you do is mask how much when you take the government subsidy route, and redistribute the costs from those who specifically use it to everyone who pays the taxes.
Of course fares will be higher when you limit the cost to those who specifically use it..
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Yes, it will be higher, if they raise the fares. Probably they still have to pay it off. They don't want to be bankruptcy.