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KauaiK

(544 posts)
Sat May 24, 2014, 02:28 PM May 2014

Can any think of an instance when privatizing or deregulating something benefited the public?

I cannot think of one instance where a entity or business that was regulated and then privatized or deregulated benefited the general public.





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Can any think of an instance when privatizing or deregulating something benefited the public? (Original Post) KauaiK May 2014 OP
I know the private water and sewer facility servicing my place only charges $800 a year GoneFishin May 2014 #1
Breaking up the Bell Telephone System seemed to have made telecommunications more competitive. Jenoch May 2014 #2
That was breaking up a monopoly. Not the same thing as giving away something public owned. McCamy Taylor May 2014 #3
The OP said privatizing or deregulating something benefited the public Algernon Moncrieff May 2014 #5
Before the break up...you didn't have to BUY your device KauaiK May 2014 #7
Yeah, you had to rent the phone with a monthly charge. Jenoch May 2014 #19
Uh, what? Ma Bell was already private. TransitJohn May 2014 #36
The breakup of Bell led to the deregulation Jenoch May 2014 #37
I think it was better before they broke it up. bemildred May 2014 #42
That wasn't de-regulating. That was enforcing anti-monopoly laws. backscatter712 May 2014 #43
Airline territories Algernon Moncrieff May 2014 #4
BUT they stopped servicing small markets KauaiK May 2014 #6
Greatest good for the greatest number Algernon Moncrieff May 2014 #21
I'm not sure you can say that benefitted the greatest number of people Major Nikon May 2014 #35
Roads are different than air travel Algernon Moncrieff May 2014 #38
Obviously Major Nikon May 2014 #40
airlines? maybe? arely staircase May 2014 #8
Got better, now it's gettung wose..A familiar pattern Armstead May 2014 #15
Carter's deregulation of trucking and rail. AngryAmish May 2014 #9
I think they decided Leme May 2014 #10
Message auto-removed Name removed May 2014 #11
maybe Leme May 2014 #12
ARPANET TM99 May 2014 #13
Tht's not in the plan Armstead May 2014 #16
Agreed. TM99 May 2014 #23
Ah, good ol’ trustworthy beer. My love for you will never die Brother Buzz May 2014 #14
No Rosa Luxemburg May 2014 #17
No, not one. bemildred May 2014 #18
Defense Contracting AnalystInParadise May 2014 #20
The industry has not been deregulated at all what you are talking about is how Congress passed laws Exposethefrauds May 2014 #25
Beer. alarimer May 2014 #22
Liquor stores. justgamma May 2014 #31
Still are in many jurisdictions...never were in a lot of other jurisdictions. Chan790 May 2014 #33
They did that in WA state a couple years ago and prices have gone up. pnwmom May 2014 #39
Airlines and trucking ... nt quadrature May 2014 #24
When privatizing and SamKnause May 2014 #26
Not much in the US; we've never had many nationalized industries Recursion May 2014 #27
I actually can BainsBane May 2014 #28
it will be quite rare quaker bill May 2014 #29
In MN there is one I can think of but it is still controlled by the state. Years ago many of the jwirr May 2014 #30
National park P3's. joshcryer May 2014 #32
Nope. n/t Jamastiene May 2014 #34
no Skittles May 2014 #41

GoneFishin

(5,217 posts)
1. I know the private water and sewer facility servicing my place only charges $800 a year
Sat May 24, 2014, 02:42 PM
May 2014

and I get to keep the pipes connected to my house 24/7/365 even if I never use them.

So there's that.

 

Jenoch

(7,720 posts)
2. Breaking up the Bell Telephone System seemed to have made telecommunications more competitive.
Sat May 24, 2014, 02:47 PM
May 2014

Deregulating the airlines seems to have put the inefficient airlines out of business. Back in the day, families could not afford to fly to destinations. Only the rich and business people mostly were able to afford to fly.

Algernon Moncrieff

(5,794 posts)
5. The OP said privatizing or deregulating something benefited the public
Sat May 24, 2014, 02:59 PM
May 2014

The breakup of the Bell System included accompanying deregulation regarding who could sell long distancee service.

KauaiK

(544 posts)
7. Before the break up...you didn't have to BUY your device
Sat May 24, 2014, 03:25 PM
May 2014

It's was provided as part of the service.

backscatter712

(26,355 posts)
43. That wasn't de-regulating. That was enforcing anti-monopoly laws.
Mon May 26, 2014, 10:49 AM
May 2014

Wouldn't it be nice if the anti-trust laws got enforced on occasion like they used to?

Algernon Moncrieff

(5,794 posts)
4. Airline territories
Sat May 24, 2014, 02:56 PM
May 2014

Despite all of the consolidation among airlines, compeitive routes have made air travel between major cities much more affordable.

The old ICC had some really boneheaded rule. I cite "Smokey & the Bandit" as an easy to understand case-in-point. Restrictions on the sale of certain products in certain regions of the company were silly and served nobody's interest. Now, we don't have to take a Trans Am and a Semi to Texarkana to have Coors beer at a party in Atlanta.

Algernon Moncrieff

(5,794 posts)
21. Greatest good for the greatest number
Sat May 24, 2014, 09:27 PM
May 2014

There are far more fliers in the big markets that benefited from lower fares than fliers in smaller markets who lost access to a quick trip to the airport.

Major Nikon

(36,827 posts)
35. I'm not sure you can say that benefitted the greatest number of people
Sun May 25, 2014, 04:49 PM
May 2014

About half of airline travel is business related and when you increase the cost of doing business in less densely populated areas, you hamper economic growth in those areas.

It would be like saying we are going to only build roads in urban areas because that directly benefits more people. While that might be true the flaw in that method is readily apparent.

Algernon Moncrieff

(5,794 posts)
38. Roads are different than air travel
Sun May 25, 2014, 10:25 PM
May 2014

Air travel isn't used to move items in bulk from less densely populated areas in the same way that motor ground transport and rail are. Even air freight parcels are generally shipped into major markets; sorted; and dispatched out of the major markets.

In terms of passenger travel, business travelers doing New-York to LA, New York to Miami, DC-NY-Bos shuttle, and travel to and from Dallas, Atlanta, and Chicago benefitted greatly in terms of lower cost.

Major Nikon

(36,827 posts)
40. Obviously
Sun May 25, 2014, 11:46 PM
May 2014

But the cost of moving people still influences business decisions and the cost of doing business. If you have a business that relies heavily on business travel, you are going to pay a penalty for locating that business away from a major airline hub. That's why airlines were regulated in the first place and it's also why the Essential Air Service program exists. Having an airport in a community and air service is important for a number of reasons.

arely staircase

(12,482 posts)
8. airlines? maybe?
Sat May 24, 2014, 03:28 PM
May 2014

I know how fucked up they are, but didn't flying used to be a more elitist means of transportation because of pricing?

 

Armstead

(47,803 posts)
15. Got better, now it's gettung wose..A familiar pattern
Sat May 24, 2014, 03:57 PM
May 2014

Things get deregulated or privatized there is a period of establishing new markets and adjusting and new competition. Terefore consumers matter and pricing and products are competitive.

But inevitably it backfires. New Monopolies form, and this time without the restraints of regulation.

And guess who gets screwed s a result?

 

Leme

(1,092 posts)
10. I think they decided
Sat May 24, 2014, 03:34 PM
May 2014

just a few years ago.. to not regulate personal production of beer for personal use.

Response to KauaiK (Original post)

 

TM99

(8,352 posts)
13. ARPANET
Sat May 24, 2014, 03:44 PM
May 2014

Thanks in part to Al Gore, the Internet arose out of the ashes of this strictly government inter-network.

Now, we may have come full circle, and it will be important to once more have government regulation at least as far as classification purposes, but the Internet thrives due to private enterprise and will continue to do so if properly regulated.

 

Armstead

(47,803 posts)
16. Tht's not in the plan
Sat May 24, 2014, 04:01 PM
May 2014

They are trying to 1)Hand over the Internet to a Massive Monopoly (Comcast) leaving only some token competition remaining, maybe.
2) Take away the restraints that prevent them from offering choice of good delivery and service or shitty delivery and service based titlly on price.

 

TM99

(8,352 posts)
23. Agreed.
Sun May 25, 2014, 02:41 AM
May 2014

And, the FCC has not yet ruled out Net Neutrality completely.

I have watched the Internet develop from the beginning. We are on the brink of destruction, that is for sure.

But that still doesn't change the fact that it has been an example of positive privatization. Human beings are just greedy shits.

Brother Buzz

(36,488 posts)
14. Ah, good ol’ trustworthy beer. My love for you will never die
Sat May 24, 2014, 03:46 PM
May 2014

In 1979, Carter deregulated the beer market, which was tightly controlled since the end of prohibition. As a result, craft beers and brewpubs were able to make a go of it without becoming bogged down in the hellacious bureaucratic red tape that totally favored the 'Big boys'.

And as Martha Stewart would say, 'It's a good thing'.

bemildred

(90,061 posts)
18. No, not one.
Sat May 24, 2014, 04:10 PM
May 2014

I can think of times the government got out of the way when it was over-regulating, and supporting monopolies, and wasting money on useless shit, but I can't think of a time it did the public any good when the government said "Go for it boys!", and sold off public services for peanuts, no.

 

AnalystInParadise

(1,832 posts)
20. Defense Contracting
Sat May 24, 2014, 05:12 PM
May 2014

with the deregulation of this industry, it has opened the door to thousands of small veteran owned defense contracting firms to be able to compete with the big boys, raising salaries across the board, while increasing employment.

 

Exposethefrauds

(531 posts)
25. The industry has not been deregulated at all what you are talking about is how Congress passed laws
Sun May 25, 2014, 06:11 AM
May 2014

and presidents have signed EO's requiring agencies to award more work to smaller companies and large companies (Boeing, Lockheed) to give large percentages of work to smaller subcontractors.

Lockheed still takes in 25%+ of the DoD Budget every year, now they just share more of it with subs and front companies.

alarimer

(16,245 posts)
22. Beer.
Sat May 24, 2014, 10:08 PM
May 2014

I'm not kidding. Up until the Carter administration (I think), people were not allowed to brew beer at home. As a result, American beer sucked. Well, a lot of it still sucks. Home-brewing eventually led to the craft beer industry, which I think has been a boon overall to those who enjoy it.

And I guess you could say the end of Prohibition. Prohibition led to organized crime and many, many deaths by poisoning because people drank denatured and adulterated alcohols. Seriously, read the Poisoner's Handbook by Deborah Blum.

 

Chan790

(20,176 posts)
33. Still are in many jurisdictions...never were in a lot of other jurisdictions.
Sun May 25, 2014, 02:06 PM
May 2014

It's entirely a consequence of where you live.

pnwmom

(109,021 posts)
39. They did that in WA state a couple years ago and prices have gone up.
Sun May 25, 2014, 10:28 PM
May 2014

Because they're paying taxes to the state AND charging customers for their profit.

SamKnause

(13,113 posts)
26. When privatizing and
Sun May 25, 2014, 06:52 AM
May 2014

deregulating is enacted, it is not intended to benefit the public.

The intent is to benefit corporations, shareholders, CEO's, Wall Street, lobbyists, and inept corrupt politicians.

The history of privatization and deregulation is verifiable proof.

Governments think the public is stupid and uninformed.

Many are.

They are good at selling lies and deceit.

The answer to your question is no.

Recursion

(56,582 posts)
27. Not much in the US; we've never had many nationalized industries
Sun May 25, 2014, 07:07 AM
May 2014

I can think of more explicitly socialist countries (eg, India) where de-nationalization has been (at least from time to time) a good thing.

The whole terminology is kind of Orwellian: it's not like the US has ever been particularly nationalized. The closest thing was Bell Telephones (which was essentially funded by a mandated tax), and its breakup was the closest example of "good" privatization the US has seen (though it too was a mixed bag).

Mostly, "privatization" in the context of the US means oligarchization and removal of actual capitalist competition. (Yet another reminder that "real" capitalism isn't the enemy here...)

BainsBane

(53,097 posts)
28. I actually can
Sun May 25, 2014, 07:23 AM
May 2014

In Brazil, the state controlled industry so tightly it let in few imports. That policy (Import Substitution Industrialization) was useful for a few decades because it allowed Brazil's economy to industrialize. By the nineties, however. it resulted in an economy where goods were very expensive, wages low, and a manufacturing elite reaped enormous profits. That state controlled economy was not at all left-wing, as one might assume. In fact those policies were maintained throughout two decades of right-wing dictatorship. Opening up Brazilian markets to imported goods actually helped consumers, Brazil's middle class. It was not enough to increase the middle class. That would come in the 2000s under Lula, but it was part of that process.

One example of the insanity was the state controlled telephone system. There were so few phone lines, you had to wait years and pay a fortune to buy a line. You couldn't call the phone company and have service set up. People ended up renting phone lines from people who owned them. It was very expensive and subject to all kinds of abuse. As soon as cell phones became available, Brazilians quickly purchased them and freed themselves from having to lease phones from individuals, so cell phones were widespread there before they were in the US.

quaker bill

(8,225 posts)
29. it will be quite rare
Sun May 25, 2014, 07:52 AM
May 2014

Things were made public or regulated for a reason. Generally gov't goes out of its way to do something like this because the public demands it, usually to resolve a problem with the deregulated and private system.

Once we return to the previous state, all the problems solved crop up again.

Beer on the other hand is a contrarian example. In that case regulation was imposed to benefit a small group of corporate breweries. Removing regulation allowed innovation and diversity in that case.

If a regulation has the predominant effect of concentrating corporate dominance, removing it will often (but not always) be beneficial. However, if the regulation has the predominant effect of protecting public health, safety and welfare, it should be left alone or strengthened.

jwirr

(39,215 posts)
30. In MN there is one I can think of but it is still controlled by the state. Years ago many of the
Sun May 25, 2014, 09:37 AM
May 2014

persons with developmental disabilities ended up in the institutions. Today they are mostly in community based services. These services include both private and public foster care homes. What helps here is that the state still maintains control of the homes when its social workers inspect the homes - usually 2 times a year for each client - and the most important control the state has is that it controls what the home gets paid and must provide for that payment.

What was really good in this situation was that it broke the system that was present in the state run institutions and brought the people into the community where they can function to their highest level.

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