Why we all pay more when essential services are privatized.
November 17, 2011
Who gains – and who loses – when public assets and jobs are turned over to the private sector?
The corporate right endlessly promotes “privatization” of public assets and public jobs as a cash-raising or cost-saving measure. Privatization is when the public turns over assets like airports, roads or buildings, or contracts out a public function like trash collection to a private company. Many cities contract out their trash collection. To raise cash Arizona even sold its state capital building and leased it back.
The justification for privatization is the old argument that private companies do everything better and more “efficiently” than government, and will find ways to cut costs. Over and over we hear that companies do everything for less cost than government. But it never seems to sink in that private companies don’t do things unless the people at the top can make a bundle of cash; if the CEO isn’t making millions, that CEO will move the company on to something else. When government does something they don’t have to pay millions to someone at the top.
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