Saturday, February 14, 2009

Government Failure: The Demise of Bike-Sharing Utopias

Every time a government program is put in place without considerations of economic incentives, you can make a clear prediction: the program is bound to fail. The expected demise of bike-sharing utopias is another example of pervasive and lasting economic ignorance, ideological stubbornness, and the predictive power of good economics (HT Perry).

The famous Velib bike-sharing system, created by the socialist administration in Paris, which was once considered to be an example of good public policy - at least by people with a poor understanding of economic issues - is completely broke.

Paris is not the only city victimized by economic obscurantism, and it will certainly not be the last. Bike-sharing failures happen again and again all over the world. It happened in Brussels, Belgium, in Rome, GA, in Lexington, KA, in St. Cloud, MN, in West Lafayette, IN, and in San Francisco, CA. If you keep looking, you'll find many other examples.

The video below shows what is expected to happen when you throw taxpayers' money at economically-illiterate programs. In times of porkulus folly, it augurs things to come.


ENNYMAN said...

I am thinking of coining a New Phrase... "Vegan Government" It is what you get when Government policy makers cut out their appetite for Pork.


ßizårro said...

Cáspita! Se pelo menos este tipo de comportamento fosse restrito ao Brasil, ainda restaria esperança na humanidade.