Essays on Government Intervention and the British Railway System Case Study

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The paper "Government Intervention and the British Railway System" is a perfect example of a business case study. Arguably, the institutionalization of the railway's system is the utmost significant incident in the history of the United Kingdom (UK). Since the inauguration of the “ Liverpool and Manchester Railway in 1830” (Sussman, 2009, p. 1), the railway has become one of the most treasured transit systems in the UK. Nonetheless, the growth and advancement of the road transport industry meant that the railway system would face stiff competition. In addition, the drop in car prices made a huge percentage of people to purchase and use private cars, or use taxis.

This thus led to a decline in the number of passengers who relied on trains as their main mode of transportation. As such, by the mid-20th Century, the railway transportation system was faced with huge financial hitches. Notably important, the departments in charge of ensuring efficient operation of the railways had no plans to effectively deal with these financial problems. The lack of appropriate plans to deal with the financial hitches thus led to government intervention in the railway system.

As a result, the railway system underwent nationalization under the Transport Act of 1947 by the Labor Government (Callender, 2009, p. 162). Therefore, the failure of the laissez-faire approach in the management of the railway system resulted to close government intervention. Hence, in a bid to discuss how the UK government policies regarding railways transport have shifted since the early 19th Century, this paper will focus on the nationalization, privatization and post-privatization processes of the British Railways System (BRS). Generally speaking, the core objective of government intervention was to ensure that there were coordination and integration in the railway transit system.

Therefore, through nationalization, the British government expected to shield the railways from the financial hitches that were caused by road transport. However, according to the US National Defense Transportation Association (NDTA), the nationalization of the BRS failed to solve the financial difficulties in the railway system, and thus this sector continued to receive losses (1949, p. 52).

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