Chicago’s Parking Fiasco Fails to Stem Calls for Privatization of Infrastructure

[marmar]

from the Transport Politic blog:




Who knew an investment in public infrastructure could be so profitable? Or rather, are government entities being bamboozled out of the value of their own property?

About two years ago, Chicago Mayor Richard Daley sold off the rights to 75 years of his city’s public parking meters for $1.15 billion to a partnership of private companies led by Morgan Stanley. Mayor Daley pushed the city council to approve the deal, since it would mean a huge cash infusion into a municipal government facing large budgetary shortfalls. And he argued that putting the parking system in the hands of private enterprise would bring in market-based pricing, essential to improve the circulation and distribution of automobiles in the city’s downtown, but impossible to implement because of a lack of political will.

Bloomberg News, however, revealed last week that the private partnership that bought up the spaces expects to generate at least $11.6 billion in revenues over the course of the contract — producing a potential profit of $9.58 billion, twice what some anti-Daley city council staffers predicted in 2008 the city would lose by selling off the meters (an amount that at the time was considered outrageously high). Chicago, meanwhile, has virtually exhausted the initial funds it received from the deal, having done little to adapt to its local government funding shortfalls.

This situation should put a chill in the spine of those who believe that privatization of public infrastructure will benefit the public pocketbook. And it should be a lesson for politicians who advocate balancing the budget in the short-term through the sale of assets that generate income over the long-term.

Yet the City of Chicago continues to consider the leasing out to private corporations of its Midway Airport. Major candidates running for mayor in Toronto are actively discussing the possibility of privatizing parts of that city’s transit system. ..............(more)

The complete piece is at: http://www.thetransportpolitic.com/2010/08/19/chicagos-parking-fiasco-fails-to-stem-calls-for-privatization-of-infrastructure/

[Orrex]

1. No matter how many privitization schemes result in horrendous disaster

"Free traders" will continue blithely on, preaching the ills of public infrastructure. They don't even regard the failure as a failure, because the parking meter scheme did exactly what it was intended to do: screw the city out of billions.

And the shitty thing is that a great many individual citizens, having succumbed to the media-blitz brainwashing, will fight tooth-and-nail in favor of the privatization. Apparently it's okay to pay $1.25 to a corporation for a service, but having to pay the city $0.25 for the same service is considered robbery.


All else aside, why in the world did Daley sell part of the city's soul for seventy-five years?!? Why not five or ten or even fifteen, to give the city a chance to back out if it became clear (as it has) that the sale was a catastrophic failure?

[Hannah Bell]

2. they knew. it's just a giveaway to their buddies. corrupt bastards.

[ThomCat]

7. Yes, exactly. It was Intended to be a giveaway to their friends.

It was a deliberate loss for the government. It was a huge deliberate win for the buyer.

Every scheme to privatize public resources is a deliberate effort to mug the public treasury with the help of corrupt politicians. We just have to ask ourselves how are those politicians going to get paid back for assisting the corporations in mugging us?

Consulting deals? Speaking fees? High paying contract in a cushy new job? Access sweetheart deals of some kind?

[Liberal_in_LA]

9. +1

[Billy Burnett]

3. Classic work done by the Wrecking Crew.

Public risk and debt, privatized profit.

It's the new American way.

Somewhere there are some proud parents.

Proud that their kids (the members Wrecking Crew) have figured out a way to financial security through entrepreneurial creativity.

It's the new American way.

[ProgressiveProfessor]

4. Monkey wrenching opportunity

Like speed cameras, only easier to take out.

[Billy Burnett]

5. Do you see all of the CISCO ads pushing public privatization/automation.

Virtual (but privatized) schools. Fire depts. Medical.

http://www.cisco.com/warp/public/750/ads.html


Look how creative our kids are. They've learned their opportunistic entrepreneurial creativity skill set lessons well. :puke:

So what that they're bringing America down ... at least they've moved out of the house. :crazy:

[DailyGrind51]

6. Chicago would be in much better financial shape if Daley wasn't cutting his family and friends on

City contracts, even as "go-betweens" or middle-men. Chicago gave $100 million in minority set-aside contracts to a white mob-connected contractor and Daley pal. The guy admitted guilt and was sentenced to a 10-year stretch, rather than go to trial, a real "stand-up guy", I guess?

[starroute]

8. This is the insidious effect of right-wing propaganda

The linked article essentially says that governments feel they can't raise parking meter or other user fees because citizens would complain. But they can sell off the rights to private, for-profit corporations that will then jack up the cost -- and nobody will say shit, because the right of private corporations to make a profit come hell or high water is universally accepted.

Or, similarly, that they can't raise taxes to keep the roads paved or the water mains repaired -- but they can sell off the roads or water systems to companies that will then jack up the price.

If that's a true statement about public attitudes, then what sort of a con job have the "government bad, business good" forces pulled on us?

And if it's not a true statement, then they've pulled an even bigger con by forcing elected officials to pretend that the public prefers privatization over higher government fees/taxes even though that's not the case.

And I don't even see any mention of the fact that publicly-paid police are still going to be writing tickets to enforce the payment of parking tolls -- and presumably arresting people who don't pay them. When the police power is diverted into protecting the profits of private entities, we really are that much closer to fascism.

[Kat45]

10. Some interesting points.

Scary too.

[Mika]

11. Kick for this post.

:kick:

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