Too Much Power

San Bruno station is shuttered during the strike

Diversification isn't just a desirable attribute of investment portfolios, it's a fundament of capitalism. If purchasers of goods or services are too reliant on one supplier, purchasers are vulnerable to supply disruptions, price hikes, unfavorable contract renegotiations, and other characteristics of monopolies.

"Natural" monopolies, such as public utilities that have no competition because of their economies of scale, are regulated by the government. When the government operates the monopoly, consumers are for the most part helpless.

For thousands of commuters Bay Area Rapid Transportation (BART) trains are the only transit method. Alternative transportation--including driving--from the East Bay to San Francisco is costly and can be much slower. That is why the BART strike, which began Monday, is so devastating. It's also dysfunctional (bold added):

BART's labor stoppage is polluting the air, wasting commuters' time and, at least by one estimate, costing the overall Bay Area economy $73 million per day.

The most public sticking points that led to the strike have been raises and pension contributions, a dispute that is separated by $17.53 million a year.

When the monopolist sneezes, everyone catches cold---a cautionary tale about granting any entity, public or private, too much power over everyone's lives.
© 2013 Stephen Yuen
[Update - 7/5/13: trains will resume service for 30 days as management and unions attempt to reach a deal.]