Oil was blocked, causing capital to enter the oil industry to release the block. That led to the oil industry having inordinate power. A strike in the rail industry would bring large amounts of capital into that industry to end the strike and prevent future strikes. As a result of breaking the rail strikes so well, (ironically, because the loss of rail service is so economicly painful) the government has created a problem of chronic underfunding for train transportation. We see this most clearly in the complete lack of bullet trains in the US even decades after their invention.
Economic Theory and the Aborted Rail Strike
Oil was blocked, causing capital to enter the oil industry to release the block. That led to the oil industry having inordinate power. A strike in the rail industry would bring large amounts of capital into that industry to end the strike and prevent future strikes. As a result of…
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