PSPINC CEO Kenichi Uchikura's Blog

When the government operates a business, there’s often little incentive to make it profitable—or even efficient. The evidence is all around us. Most rail systems in the United States, from the major operator Amtrak to newer regional services like Sound Transit’s Light Rail in Washington State, rely heavily on taxpayer funding. Without government subsidies, many of these systems wouldn’t survive, let alone operate.

 

I remember when Japan’s entire rail system, including the iconic Shinkansen bullet train, was run by a government organization known as JNR—Japan National Railways. For decades, ticket prices rose year after year, yet the organization still required significant tax support to stay afloat.

 

That all changed in 1987, when JNR was privatized and split into several independent companies. Since then, Japan’s railways have been remarkably efficient and profitable. These private companies have not required taxpayer assistance, and labor strikes—common in government-run transit systems—have virtually disappeared.

 

The lesson is clear: government should not be in the business of running businesses. Efficiency, innovation, and financial responsibility come from competition and accountability—traits rarely found in government-run enterprises.