I read a couple articles today, one far more intriguing than the other, about how cities are looking to privatize public services to make a few bucks.
Personally, I'm for privatization. A core belief of the traditional conservative attitude is that, if a government doesn't have to run something, it probably should be privatized. The catch has historically been where to draw the line, which is a constant debate. Public utilities, like the sewer system, are usually run by town government, but why not privatize?
A lot of people are afraid of privatization. Many call certain movements, like the privatization of social security, outright dangerous. I think it's a bit naïve to outright fear all forms of privatization. Yes, there are instances where the government is the proper facilitator. But those situations must be clearly defined, or else all the government really has to do is say "It's for the common good, and we have the people to do it." Makes sense, until you take the Constitution into account.
But that's another argument for another post. What I want to talk about is how privatization can be, and more often than not is, a good move. Private companies often come in with far more efficient systems than public utility organizations, and the bid process historically drives competition between companies.
The fear is primarily that private companies, being driven by profit, will charge more if they are a monopoly. It's a legitimate concern, but it also works in the public's favor. If they were to lose the contract as a result of drastic overcharging or poor service, it would cost them a bundle, perhaps even their businesses in total. So, what you need is careful oversight, which can and is performed by the government. That's a great use of government and benefits the public. But private companies, on the whole, do a better job than a non-competitive government organization.
With privatization, you often end up saving money because of the efficiency. Sure, companies will be looking to make a profit, but the net cost is often lower. It's simply because of competition, which is simply not there with government agencies. With the way many modern governments are structured, the bureaucracy gets in the way so often that it's not even worth it to complain. If you have a private company, customer service is often part of their business.
Personally, I'm for privatization. A core belief of the traditional conservative attitude is that, if a government doesn't have to run something, it probably should be privatized. The catch has historically been where to draw the line, which is a constant debate. Public utilities, like the sewer system, are usually run by town government, but why not privatize?
A lot of people are afraid of privatization. Many call certain movements, like the privatization of social security, outright dangerous. I think it's a bit naïve to outright fear all forms of privatization. Yes, there are instances where the government is the proper facilitator. But those situations must be clearly defined, or else all the government really has to do is say "It's for the common good, and we have the people to do it." Makes sense, until you take the Constitution into account.
But that's another argument for another post. What I want to talk about is how privatization can be, and more often than not is, a good move. Private companies often come in with far more efficient systems than public utility organizations, and the bid process historically drives competition between companies.
The fear is primarily that private companies, being driven by profit, will charge more if they are a monopoly. It's a legitimate concern, but it also works in the public's favor. If they were to lose the contract as a result of drastic overcharging or poor service, it would cost them a bundle, perhaps even their businesses in total. So, what you need is careful oversight, which can and is performed by the government. That's a great use of government and benefits the public. But private companies, on the whole, do a better job than a non-competitive government organization.
With privatization, you often end up saving money because of the efficiency. Sure, companies will be looking to make a profit, but the net cost is often lower. It's simply because of competition, which is simply not there with government agencies. With the way many modern governments are structured, the bureaucracy gets in the way so often that it's not even worth it to complain. If you have a private company, customer service is often part of their business.
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