[Scipio_Afri]

This is good analysis. Not to say that the "correct result" is the best result - we'd find a way (laws) to force profits to prevent fairly likely disasterous events from happening in the first place. In a competitive marketplace with enforcement of the spirit of those laws that would mean companies try to innovate and drive down the costs of implementing those changes. It would also mean that competition woult keep a lid on profits from becoming too great, creating motivation for companies to simply pursue the most profitable thing. As a natural market (essentially infrastructure) monopoly, things are different.

If infrastructure/natural monopolies are run by the state, that is a decent solution so long as people are elected into power that understand they're making decisions to maximize the benefit of the citizens.

What is needed is tighter enforcement or a framework which incentivizes entities for innovating ways to improve services to their customers and minimize societial impact. While bankruptcy and the bond market is a decent check on that behavior, those who enacted those policies and made more profit with them enriched themselves and simply had the clock run out on their corner cutting not causing external damage (externalities on society). It doesn't prevent that behavior but it does prevent it from continuing.. for some time until the new board looks for ways to further their return on investment. Which eventually leads to the similar damaging behavior.