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Privatization is Wrong

2017-01-11

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New York Times:

“There’s a magical thinking among business executives that something about the profit motive makes everything run better,” noted Raymond Fisman, a professor of economics at Boston University. “What is government going to be like when it is run by billionaire C.E.O.s that see the private sector as a solution to all the world’s problems?”

A serious body of economics, not to mention reams of evidence from decades of privatizations around the world, suggests this belief is false.

Many studies show what makes perfect sense: you get worse service and pay more money when you mix the profit motive with essential government services.  Every time.  There’s no room for profit when you are performing an essential service that people don’t want in the first place.  Profit is only useful as a motive when you are dealing with things that people want.  The idea that profit can make things you don’t want better is just perfect for providing graft and that’s what Donald really wants: handles to pass out graft money so he can milk the economy, the same way Vladimir Putin is doing– only Vlad is a much younger, tougher guy and Donald is just a big fat orange narcissistic slob.

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