Privatization: The Big Joke That Isn't Funny

[xchrom]

http://www.nationofchange.org/privatization-big-joke-isnt-funny-1343656123

The privatization of public goods and services turns basic human needs into products to buy and sell. That's more than a joke, it's an insult, it's a perversion. It generally benefits only a privileged group of businesspeople and their companies while increasing inequality and undermining the common good.

Various studies have identified the 'benefits' of privatization as profitability and productivity, efficiency, wider share ownership and good investment returns. These are business benefits. More balanced studies consider the effects on average people, who have paid into a long-established societal support system for their schools and emergency services, water and transportation systems, and eventually health care and retirement benefits. These studies have concluded that:

-- Privatization has generated large profits for new owners but these have not been shared with the general public.

-- The potential benefits of privatization are often outweighed by high contracting costs and opportunism.

-- Most privatization programs appear to have worsened the distribution of assets and income, at least in the short run.

While privatization may lead to efficiencies in producing goods, it is generally only true under conditions of competition and regulation. The New Jersey Privatization Task Force asserted that "States that have had the most success in privatization created a permanent, centralized entity to manage both privatization and related policies aimed at increasing government efficiency."

[freshwest]

1. Thank you! Privatization of human services can create abuse, destroying lives.

No efficiency in a betrayal of trust and broken spirits.

[1-Old-Man]

2. The failure of Privatization can be explained easily

If you have a job that has to be done and is being done by the Government there will be some minimal supervisory staff that has to be paid and then there are the workers themselves that have to be paid and then there are the costs of materials and supplies. Those are the elements of cost to get the job done. Now if you privatize it you will have this, some minimal supervisory staff, then the workers themselves that have to be paid, and then there will be the costs of materials and supplies - everything the same so far - and finally there will be profit added to the total cost. It is that additional profit that is unwarranted and constitutes nothing more than an additional expense for tax payers for exactly the same work.

[oldhippydude]

6. thats the tip of the iceberg

often they privatize public resources for pennies on the dollar.. infrastructure that has been paid by taxpayers for decades, becomes private property.. on top of that the services by their very nature are often a monopolistic model, inviting abuse.

[xtraxritical]

10. Capitalism is a sick joke. Labor makes product, not capital.

[valerief]

3. Privatization = 1%er Profit. Nothing more, nothing less. nt

[randome]

4. The biggest joke regarding privatization is that private companies are less bureaucratic.

I have worked for a number of large corporations and all of them grow more bureaucratic over time, not less. It's human nature when large groups of people are involved.

[Starry Messenger]

5. k&r

[byeya]

7. Privatization usually equals both theft and poorer service.

[duhneece]

8. Certain necessary services should never be privatized

Prisons, water, 'public' utilities, military security & suppot, etc.

Not sure how the phone thing works in that theory-

[Hydra]

13. Basically, if it's something everyone needs

Or a service that needs to be everywhere to work well(phone, internet, insurance, etc.) there's no reason it shouldn't be done by the gov't.

Of course, I'm biased. Supposed efficiency gains are always offset by the desire for 30%+ profit, which means fewer people work for less to get you a service that may or may not be better than the one you were getting through a public version.

[Blue Owl]

9. GWB' legacy -- Privatizin'

n/t

[woo me with science]

11. They are coming for the world's fresh drinking water.

They are coming for our children's education.

They intend to corral us to make a profit from every move we make, every need we have, every single aspect of our lives, from the moment we are born to the moment we die. We are not human beings to these corporate ghouls. We are human resources for them to squeeze dry of every cent and discard.

They will find a way to charge us for every breath we take.

[Auggie]

12. It's planned investment opportunities for the Bechtels, Halliburtons, Carlyles, etc ...

and their plutocratic owners.

[Kencorburn]

14. Here in Florida, (I know, it sounds like the beginning of a bad joke)

There was a push to privatize foster care. (Even worse joke.) Luckily the few non-Neocons we have, like two, put an end to that.
Anyone who talks to me about the virtues of privatization, I have one answer:
Medicare part D.

[Fuddnik]

16. Actually, they did privatize the administration of foster care.

Happened under Jeb's watch.

Every four years, they take bids for new contracts to administer the programs. Most of the same employees get rehired, with a different company, at the same or lower wages. Case workers have their clients, and hours skyrocket, for the same pay. And gradually they all start leaving, one by one, and they hire a new fresh face. And more upper management.

[Fire Walk With Me]

15. "The Company Store".

[The2ndWheel]

17. Human civilization privatizes the planet