We would expect that, soon enough, there will be cries that we, too, should do this:
Millions of Germans are expected to take advantage of a summer of cheaper travel from next month under government plans to boost public transport use and give financial relief to consumers facing a cost of living crisis.
A €9 a month ticket scheme is to be introduced from 1 June allowing travel on all modes of city and regional transport. A different ticket will apply for each region and it will be available for three months until the end of August.
Nothing wrong with a bit of loss leading marketing. Well, unless of course it’s about food given that BOGOFs are to be banned. Get people to try out that public transport, why not?
Well, there is this:
The scheme will cost the government €2.5 bn as it is due to pay back to transport companies the shortfall in income as well as the cost of administering the sale, including giving back to commuters who already have season tickets, the amount they are effectively out of pocket.
It doesn’t in fact cost the government that. It costs taxpayers that. No, even that MMT explanation doesn’t work here, that they can simply print the money, for being inside the euro Germany can’t print its own money.
So, with 80 million Germans this costs every man, woman and child in the country some 32 euro each.
As a loss leader and advertising, why not? Perhaps it will be made up over time. But as a permanent idea that 32 euros is why not. Because such subsidies making tickets cheaper transfer the costs from those who do ride public transport to those who do not.
As with the British railways where ticket prices are indeed higher than in many other countries. Because British ticket prices, largely (to perhaps 99% in normal times) cover the operating costs of the railways. Which seems to us fair and reasonable. Those who get to ride on the choo choo pay the price of riding on the choo choo.
The same should be true of public transport more widely - those who use it should be the ones paying for it. And why not?