4/09/2008

Fight for Old Subway Cars

One of the best ways to make an artifical reef is to push old subway cars into the ocean. Many states are realizing how great the subway cars are for the fish population and want to use them also. However, the problem is that there are not a lot of subway cars to go around. Using subway cars for artificial reefs started in 2001 when Delaware was the first state to receive the old New York subway cars for free. First of all, this was not good for the New York economy because simply giving things away is not always the best way to get rid of old products. There should be a price involved. Secondly, New York needs to open up to other states besides Delaware so that the best market price will be received for the old subway cars. Utilizing the knowledge that the old cars from New York are useful to other states can increase the benefits of getting rid of the cars. The benefits would come in because the subway cars would then have a price on them. Overall, this will actually help New York, as well as the other states that are purchasing the cars. To better the economy, states need to work together, like a business, rather than just simply giving away free hand outs.

3 comments:

Trinity said...

If these subway cars are in such great demand, why does Delaware not resell them and pocket the profit instead? Delaware could offer the cars to other states that many want them. Either Delaware just lost out on an opportunity for profits or the demand for subway cars isn't as high as you may think.

Reagan said...

If there isn't enough old subway cars to go around why not find a substitute? This sounds like a great business opportunity for someone. I'm sure one could find large old items that can be turned into artificial reefs. They could create a great niche market and helping preserve marine wildlife at the same time.

Dr. Tufte said...

I think Emma and Trinity both have a point. My guess is that arbitrage will take care of this spread.