Is privatization of public functions and assets a good thing?

Privatization refers either to selling public property (like a park or a water system) to private companies, or to outsourcing services (like schools, or prisons, or parking meters) to private companies.

One side says:
(Flip all cards) (Flip all cards)

  • Privatization is good for public budgets.

    Many towns and states have trouble making ends meet. Broken budgets lead to higher taxes and sometimes bankruptcy. Privatization means cash up front, and fewer expenses down the road.

  • Privatization is good for the consumer.

    Compare your last DMV experience with visiting the AAA. Private companies work better because they're accountable to their shareholders, and because they specialize in doing one thing well.

  • Private companies are not driven by politics.

    Private companies care about the bottom line, so they focus on getting things done rather than on political favors or petty rivalries.

  • Privatization is the American way.

    Where possible, we should harness the power of private enterprise to solve our problems. Government-run bureaucracies should be a last resort.

  • Why America's Trains Are Lame, by StosselOnFBN

The other side says:
(Flip all cards) (Flip all cards)

  • Privatization means handing over control of public assets to private interests.

    When we privatize a public asset, we lose our say in how it's run. Costs can go up and service can go down and there's nothing we can do about it.

  • Cost-cutting usually means cutting corners on things like safety.

    The savings in privatization usually come at the cost of cutting corners – like hiring a poorly paid, low-skilled workforce; delaying needed maintenance; or cutting back on safety inspections.

  • Communities that privatize public assets end up wishing they hadn't.

    Sadly, by the time they discover what privatization does, these communities are locked into long-term contracts drafted by highly skilled lawyers.

  • Privatization contracts are made to last for much too long.

    Contracts that last as long as 20 or even 50 or 75 years are the norm, so that the private company can hold a monopoly for as long as possible.

  • Monopolies should not be held by private interests.

    Water systems and parking meters are monopolies. Monopolies invite price-gouging (profiteering). The best way to avoid this risk is to keep monopolies public.

  • Profit-driven doesn't mean the taxpayers see the profits.

    Businesses can be more efficient than government. But the savings end up in the pockets of CEOs and shareholders, not in taxpayer's pockets.

  • Tapped – Privatization, by tappedfilm
  • Privatization Beast, by Happy Alien Productions