How the Government Blows Away the "Private Sector" in Delivering Services

[xchrom]

http://www.alternet.org/economy/when-it-comes-public-services-government-knows-best



Minneapolis will soon vote to shift nearly 180 privately owned bus shelters to public ownership following numerous complaints about the lack of maintenance and upkeep. When it does it will join the burgeoning ranks of cities that have discovered when it comes to public services, government knows best.

In the post-Ronald Reagan era, Americans take as indisputable that the private sector is more nimble and more innovative and the profit motive commands efficiency. But a mountain of evidence points in the other direction. The government is highly competitive. Indeed, privatized services often come at a higher price and lower quality.

The examples are legion. Medicare boasts a tiny overhead cost compared to that of private insurance companies. Federal unsubsidized student loans are cheaper and more flexible than private bank student loans. Private contractors cost Washington almost twice as much as federal employees for the same tasks.

Evidence of government excellence is equally abundant at the state and local level. In a growing number of jurisdictions governments are reassessing the value of privatizing services.

[Major Nikon]

1. That myth was nothing more than a trojan horse to shift public dollars to private companies

Just like trickle-down was nothing more than a trojan horse designed to shift the tax burden downward.

[hobbit709]

3. EXACTLY!

[Major Nikon]

6. The next thing you know there will be war profiteering

Oh wait...

http://en.wikipedia.org/wiki/War_profiteering#Civilian_contractors

[Enthusiast]

14. They can hardly wait for the next war so they can do it all over again.

[Diremoon]

11. exactly true

[Enthusiast]

13. Precisely.

Unfortunately many Democrats have bought into the privatization myth. Arne Duncan being one of the most obvious.

[marmar]

2. k/r

[Scuba]

4. K&R

[A Little Weird]

5. "...governments are reassessing the value of privatizing services."

It's about time!

[dotymed]

10. I wonder how long

this "reassessment" will take and how many private dollars will influence their findings? Not much real hope there.

Have unemployed people reassess this question. It will create jobs and be more honest.

[Omaha Steve]

7. I'm AFSCME

Thanks for the great post.

OS

[xchrom]

9. ...

[SunSeeker]

8. Alas, great articles like this never make it to the MSM.

You will not read about the truth of privatization on cnn, abc nor cbs, let alone Fox.

[RC]

12. When bu$h was appointed president, there was a lot of talk about running government like a business.

The results were so lop sided the propaganda couldn't mask the reality. Government is not a business and can not be run as such, without a lot of waste. But we are still running our bu$h instigated wars as a business. They are profitable for everyone except for the solders and the tax payers.