RE: https://mastodon.nz/@jeremy_pm/116734642350718654

That snake Simeon is trying to argue that if the public transport fee cap is only going to cost x dollars how can it save 5x or more dollars?

Simple.

1/ Much less fuel will be used as people park their cars and get on public transport. Big savings

2/ If there's spare capacity at the moment there will be minimal increase in costs. i.e. if the busses aren't full now with people paying full price but they do fill up with people paying reduced rates the income won't drop much, it may even rise. At the same time the costs won't change much at all. A bus with 50 people on it costs almost the same as a bus with 5 on it per kilometer. That's how public transport works. Low marginal cost.

So big savings, low costs.

I refuse to believe Simeon is stupid enough not to understand this and therfore must be deliberately trying to mislead. I suppose it's possible he's both too stupid and also deliberately misleading us but the #SimpleSimeon slur is too easy.

#economics
#PublicTransport