The post office in the United States is not privatized and yet has been able to set prices in a way that sustains the business for centuries. You can't simply assume that all public entities will ignore fiscal reality.
In fact you may run into the opposite problem: when a utility is public, their debts appear on the government balance sheet and legislators are responsible for them. When it's spun off as a quasi-private monopoly, the government can impose debt on the utility without appearing to increase the public debt.
https://www.congress.gov/bill/109th-congress/house-bill/6407
The US is a very right wing country. It's politicians are better able to avoid populist price controls. Maybe with Mamdani that's now changing.
The reasons why Western systems often don't recoup even operating expenses, let alone capital costs, from fares are because transit is a public service with public externalities. Drivers on the road contribute to pollution and congestion, especially relevant in dense areas like London. Some level of subsidy is appropriate to account for the positive externalities of discouraging these negative outcomes while still encouraging regional mobility.
This is not to say TfL is as efficient as it could be; there is a well-documented capital costs crisis in the Anglosphere, particularly when it comes to transit. The issues here are more complex, though, than vote buying from an allegedly "socialist" mayor.
The freezes eliminated investment projects needed to keep pace with population growth. There's also just big problems maintaining the stations and doing more than the bare minimum needed to keep the lights on. Travel on it and the stations are dirty, overly hot, etc.
Drivers on London's roads are very heavily taxed already, supposedly to reflect those externalities. Public transport obviously also contributes to pollution and congestion, especially when building underground lines, it's not externality-free.
I don't think TfL has a cost crisis. Crossrail overran but that was mostly due to the software complexities of the signalling tech debt around the Heathrow tunnels and other issues that can affect any kind of project. It's just hard to tell right now because they can't build at all.
The fare freeze was broken by central government briefly, but only by bribing Khan with central government money for upgrades. Exactly the outcome he wanted!
Rather than placing price controls on private companies the US slashes taxes to the point where public services then cannot invest in infrastructure and maintenance - and then use that as an argument why public services should be privatized.
If tax cuts aren't populist policies I don't know what are. The magic trick of the right wing parties has been to sell tax cuts as a great thing to the very people who don't benefit from the cuts and are hurt by the fiscal fall-out. That and attaching themselves to Christianity while not following any of Jesus's teachings.
When a service is a monopoly there is no good reason for turning it into a for profit company outside of feathering the pockets of the rich. If the electricity supply to my house (and by extension my street and my city) is controlled by one company and they own the cabling and infrastructure then what is the motivation for them to not jack up my prices to generate profits to their shareholders, as they should as a shareholder owned company? What is their motivation for encouraging renewables or improving infrastructure when those would reduce profits and reduce shareholder value?
Mamdani hasn't even been voted in yet. Keep sowing that fear so that the people his policies might benefit don't actually vote for him - because he's a scary socialist (in the loosest, most American, definition).
So, governments of any color have to work with that as a constraint. Given that nobody has worked out how to convince everyone to accept big increases to their tax bills, you can either pay for new expenditures with borrowing or with cuts elsewhere. Sometimes cutting elsewhere is also hard, so either:
1. Everything gets put on the credit card. This ends badly.
2. Stuff is privatized. This yields an immediate cash influx, and voters are usually happy with the results which is why very few privatizations have been rolled back. The reason is that outside of very left wing spaces most people trust private companies on pricing much more than governments. Private companies run special offers, sales, sometimes cut prices even in the face of inflation and can be visibly seen competing on price. Government owned organizations never do this.
It's also (quietly) popular with governments on both left and right for another reason - it means they have less stuff to manage and less stuff that can blow up. If there's a problem with a privatized industry they can just tell you to switch to a competitor instead of needing to campaign on it and promise to do better.
Natural monopolies do exist and sometimes governments just have to bite the bullet and run such things themselves. But there's a lot of room to debate what is and isn't a natural monopoly.
In the US we have a problem with fantastically underpricing public roads. We don't expect their books to break even, much less generate a profit. Meanwhile everyone asks why train systems are not profitable.
> The US is a very right wing country.
Yeah, at least compared with most of Europe.
> It's politicians are better able to avoid populist price controls.
You didn't notice when the current president (somewhat successfully) bullied retailers into swallowing tariff-caused price increases, so they wouldn't damage his popularity? That almost seems right-wing socialist.
It's true that the US subsidizes its road network. The effect is somewhat different though. If TfL doesn't get enough money in due to price controls then the network just degrades. If the US subsidizes its roads, the network can be maintained using subsidies. For it to be equivalent, roads would have to be privately owned but unable to charge the true cost of maintenance.
