View Single Post
  #40  
Old Posted Mar 9, 2015, 1:28 AM
overboard overboard is offline
Registered User
 
Join Date: Aug 2013
Posts: 68
Privatization talk is always so frustrating. It's a great way to appear to be cutting costs, but it takes it for granted that cutting costs is a good thing, and it really only shifts the costs and profits around.

Taking hospital security, for instance. What are the costs of "saving" there? If the government switches to a private supplier it still has to pay the full cost of security. If that cost is lower, which it may or may not be, it will almost surely be because private employees are paid less. Is it really better for the government to save a few bucks, while employee compensation (which contributes to income tax and spending in our economy) takes a hit, and the owner pockets the difference?

I can see the case for something like motor registration, because it is really hard getting out there for many people, but there are similar problems. Savings have to come from somewhere, and we or our neighbours end up paying more in other ways. A modest increase in spending could probably make all of those services more accessible, but we cry bloody murder at the thought of the government spending more. Privatization's a really great way of shifting public money into the hands of a few private individuals (usually conservatives, who knew!).
Reply With Quote