Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Faryn Balyncd

(5,125 posts)
Thu Feb 14, 2013, 04:15 AM Feb 2013

AlterNet: Privatizing Roads, Bridges, Schools and Energy Grids? Corporatism Pervades SOTU




Privatizing Roads, Bridges, Schools and Energy Grids? Corporatism Pervades SOTU

While the President pledged to reel in corporations, his grand plans for the U.S. proposed just the opposite.

by Laura Gottesdiener, AlterNet

. . .

. . . on the issue of income inequality, the President’s rhetoric was right across the board--that is, until he actually began unfurling his Grand Plans. That’s when the President’s typical double-speak kicked in. He promised to curtail corporate profits, but his vision for a new, “high-tech” America seemed to entail turning everything from our highways to our public schools into corporate-owned, public-private partnerships.


. . . Obama’s proposed public-private partnerships went far beyond public school classrooms. They also include the country’s most essential infrastructure: roads, bridges, rails and even energy grid.


. . . Couched as a way to save taxpayers’ money, the President actually just dangled a considerable carrot in front of corporations: construction grants and partial ownership of nearly all of the United States’ infrastructure.Public private partnerships are essentially a stepping stone to full privatization of our roads, bridges, railways, power grids and--yes--even our public schools.

The implications of this proposal are so scary that they even startled a Fox News reporter who commented, “It’s unnerving to hear the suggestion that the best way to guard against corporate excess is by crafting ever-closer public/private partnerships.”

As a concept, public-private partnerships can be considered a metaphor for any type of privatization: they sound smart in a capitalist society, but they’re never what they’re cracked up to be.

As a trio of smart economics professors, including one at Yale University, writes in a paper on using these partnerships to revamp U.S. infrastructure, “Public-private partnerships are often touted as a “best-of-both-worlds” alternative to public provision and privatization. But in practice, they have been dogged by contract design problems, waste, and unrealistic expectations. Governments sometimes opt for a public-private partnership, for example, because they mistakenly believe that it offers a way to finance infrastructure without adding to the public debt. In other cases, contract renegotiations have resulted in excessive costs for taxpayers or losses for private firms.”

. . .

http://www.alternet.org/news-amp-politics/privatizing-roads-bridges-schools-and-energy-grids-corporatism-pervades-sotu?paging=off











25 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
AlterNet: Privatizing Roads, Bridges, Schools and Energy Grids? Corporatism Pervades SOTU (Original Post) Faryn Balyncd Feb 2013 OP
The President also very quickly put education into that mix in his SOTU speech. snappyturtle Feb 2013 #1
Remember, we are not to criticize. This is 3d chess at its finest. scubadude Feb 2013 #2
Well, I'd prefer to be praising but I can't make a silk purse out of..........nt snappyturtle Feb 2013 #6
Education is the next big target. woo me with science Feb 2013 #13
Tell me about it! We are and I'm getting too old and fighting other battles that snappyturtle Feb 2013 #25
+1 forestpath Feb 2013 #16
Oops... ReRe Feb 2013 #3
"Public-Private Partnerships" -- right up there with . . . markpkessinger Feb 2013 #9
Disclaimer ReRe Feb 2013 #17
I absolutely agree with you... markpkessinger Feb 2013 #18
kr HiPointDem Feb 2013 #4
It's freaking Ahrimanic (R) is what it is... Berlum Feb 2013 #5
It's true that 'public-private partnerships' are often a bargain with the devil muriel_volestrangler Feb 2013 #7
Thanks for that great explanation... ReRe Feb 2013 #21
I thought that was what the Republicans always wanted to do, bvar22 Feb 2013 #8
public private partnerships always make the public the junior partner at best yurbud Feb 2013 #10
And it will continue... woo me with science Feb 2013 #11
The cost of re-election. WinkyDink Feb 2013 #12
"Just wait until his second term, when he will be freer to pursue a more progressive agenda" ... markpkessinger Feb 2013 #14
A post *this morning* crowed that the "real Obama" is about to emerge. woo me with science Feb 2013 #15
+1 n/t markpkessinger Feb 2013 #20
Corporations won't want to harm things they own! kenny blankenship Feb 2013 #19
I will never understand why Obama always wants the rich to use the government to get richer. forestpath Feb 2013 #22
Who gets rich from government? RobertEarl Feb 2013 #23
kick woo me with science Feb 2013 #24

snappyturtle

(14,656 posts)
1. The President also very quickly put education into that mix in his SOTU speech.
Thu Feb 14, 2013, 05:57 AM
Feb 2013

It was a quick remark of corps partnering in education.....that pinged my gray matter because of teevee ads I've seen which casually remark of this partnering....EXXON/Mobil ads. All this coziness congers the cloning of the future indentured worker circa 1984.

I haven't read the article yet but jut had to add my 2 cents. Actually, I'm almost afraid to read it as this future picture scares me.

snappyturtle

(14,656 posts)
25. Tell me about it! We are and I'm getting too old and fighting other battles that
Thu Feb 14, 2013, 11:26 PM
Feb 2013

I wonder where the strength will come from.

ReRe

(10,597 posts)
3. Oops...
Thu Feb 14, 2013, 07:19 AM
Feb 2013

... there go the commons. Bon voyagie commons.

Public-Private Partnerships. Doesn't sound right together. Reminds me of Church & State. Yeah, I was listening, and that stuck out like a sore thumb. Didn't like the sound of it, either. Sounds like our schools are going to be turned into old fashioned "technical schools." That's where they didn't teach you to read and write...they just taught you menial job skills so you could get nice low-wage employment when you graduated. At least you wasn't digging ditches. The more I think of it, it reminds me of North Carolina's Governor's statement a week or so ago about doing the same thing, only to the colleges in his state! That went over down there like a lead balloon, let me tell you.

And "Ask any CEO where they would rather locate and hire...". Well, we know the answer to that. Do they have high speed rail and great infrastructure in places like India, Mexico, Indonesia, China, etc., where they have been moving good jobs to for the last 30 some odd years?

We're going into full-blown Shock Doctrine Disaster Capitalism, folks, and it's beginning to scare the bajeesus out of this old girl. Cue "This is the End" by the Doors....

markpkessinger

(8,401 posts)
9. "Public-Private Partnerships" -- right up there with . . .
Thu Feb 14, 2013, 04:07 PM
Feb 2013

Last edited Thu Feb 14, 2013, 05:04 PM - Edit history (1)

. . . calling for meaningful action on global warming while promising to "speed up" oil and gas permits.

ReRe

(10,597 posts)
17. Disclaimer
Thu Feb 14, 2013, 05:53 PM
Feb 2013

.... because I do like PO very much. I voted for him twice, and I voted in the 2010 midterm as well. I vote Democrat every time the polls are open. Local, State or General election. But I live in one of those locked up pitiful crimson red states, so I feel like my vote doesn't count. I still vote, though.

But. When I hear double-speak coming out of the mouths of Democrats, even if it's PO, I feel I have to speak out. And there are some folks on DU who rip you apart when you have the nerve to say something. "Public-Private Partnerships", I feel is a new buzz thing to take the place of "Corporatization" or "Privatization." And yes, promoting climate change on one hand and signing offshore oil permits at the same time don't jive. I could go on and on but I won't. Things are really changing fast and no one is telling the People. Out of here... Happy Valentines Day!

markpkessinger

(8,401 posts)
18. I absolutely agree with you...
Thu Feb 14, 2013, 06:01 PM
Feb 2013

... Like you, I voted for him twice, and given the same choices as we had in those two elections, would readily do so again. But bullshit is bullshit, even when it comes from someone, like this President, whom I admire very much and otherwise support.

muriel_volestrangler

(101,322 posts)
7. It's true that 'public-private partnerships' are often a bargain with the devil
Thu Feb 14, 2013, 08:44 AM
Feb 2013

At their base, they are a way of borrowing the money for capital-intensive projects, without it showing up as 'government debt'. Instead, it shows up as debt owed by financing corporations, which are basically subsidiaries of banks. But they borrow money on the market at a rate higher than the US government, and they demand a profit too, so it's more expensive. The accountants try to justify this extra expense by claiming the risk (of a budget overrun in construction, or of maintenance costs being higher than anticipated) has been handed off to the private sector. But it hasn't, really - they structure the contracts so that the parent can walk away from it if it goes wrong, and the government has to take the responsibility - because it's vital public infrastructure (a school, a bridge etc.) that can't be allowed to fail.

They are a way of hiding the necessity to borrow money to build and maintain infrastructure. They're a good deal for the banks, a lousy deal for the taxpayer, and a convenient fiction for a government that is being criticised for having too high a national debt. If people stopped worrying about the size of the debt so much, there would be no need to use them. If you want an ulterior motive for the deficit hawks, this is it - to persuade the government to pay the private sector more to fix problems the government could fix itself.

ReRe

(10,597 posts)
21. Thanks for that great explanation...
Thu Feb 14, 2013, 06:15 PM
Feb 2013

... of public-private partnerships. Bottom line, it's just more slight of hand shell game, and in the process, we literally turn into America, Inc. They always have to get in the middle don't they? The money needs to flow through their hands so they can take their slice. Usury. Loan sharks. GREED. That's the way I look at all of it. Disgusting.

bvar22

(39,909 posts)
8. I thought that was what the Republicans always wanted to do,
Thu Feb 14, 2013, 02:22 PM
Feb 2013

...have the RICH FUCKS own Every-fucking-thing-in-the-WORLD.


My Bad.

Now that it is the Democrats who want to privatize everything,
I guess it is All GOOD!




No Publicly Owned Necessities, Utilities, or Common Wealth
No Magna Carta
Back to the Dark Ages of Feudal Lords and Kings!!!

Those who haven't learned History are destined to repeat it!




[font size=2]

yurbud

(39,405 posts)
10. public private partnerships always make the public the junior partner at best
Thu Feb 14, 2013, 04:50 PM
Feb 2013

and any profit or benefits go solely to the corporations.

markpkessinger

(8,401 posts)
14. "Just wait until his second term, when he will be freer to pursue a more progressive agenda" ...
Thu Feb 14, 2013, 05:04 PM
Feb 2013

. . . Isn't that (or some variation of it, what we've been told for the last four years?

I'm still waiting.

woo me with science

(32,139 posts)
15. A post *this morning* crowed that the "real Obama" is about to emerge.
Thu Feb 14, 2013, 05:35 PM
Feb 2013

Four years in, and still trying to claim that the corporate one we've had for four years now isn't the real one.

kenny blankenship

(15,689 posts)
19. Corporations won't want to harm things they own!
Thu Feb 14, 2013, 06:03 PM
Feb 2013

You're being closed minded. That's liberals for ya. Besides, the Equity Line Of Credit you can get on your first born is way too good to pass up. No payments for five years!

Five years!

 

RobertEarl

(13,685 posts)
23. Who gets rich from government?
Thu Feb 14, 2013, 08:29 PM
Feb 2013

Why, it is the people we elect to be leaders. From what I've heard, it wasn't always this way. Seems in the past we had real servants who cared more for the general public than themselves. Seems like a modern myth today, don't it?

Anyway, Obama isn't rich because he gave it all away. And neither is congress. And they make the laws and they get richer, not poorer. At least they are spreading their riches. Some call it trickle down.

The US.gov is like the biggest bank in the world and the blokes at the top are 'working hard' to make sure all the 'haves' who Bush called 'his base', have more. They'll be fine. They write the laws. Do like Bush told us when presented with 9/11: Go shopping!

Latest Discussions»General Discussion»AlterNet: Privatizing Roa...