alt Hacker NewsAs someone who grew up in San Diego and now lives in Dubai, I point towards how much of the construction companies in Dubai are partly government owned and were at once fully owned before the government sold shares in their IPOs.
I really don’t understand why the California government doesn’t just build luxury condos at a large scale for profit. The state will get revenue and lower housing costs overall.
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Private companies are good at removing inefficiencies. As long as there is competition, private companies will offer better service at lower price. State-owned companies work better in cases where maintaining healthy competition is not possible, or where inefficiencies are not a concern.
In particular, Gulf states have virtually unlimited money, which means that it doesn't matter whether a new construction costs $400k or $800k or what.
It's very rare to find state-owned companies which main goal is to provide service to the citizens and they turn a profit without some form of government subsidies along the way. Let me ask - if you think there is huge market for new construction and it's easy to make profit, why don't you start a construction company?
Why? The level of graft would be breathtaking. No doubt some major builders would get preference for cost plus budgets on inflated numbers. Politicians would steer money to their supporters.
They’d like be building at 1.5 to 2 times what private does.
Because that's communism
Not a bad idea, should have started with a 2 family house before trying to build a high speed train.