Continuing with my series on privatization of government services, today I look at the question of how privatization creates value. You can also read part one on the types of transactions. While a few people just don't like the government doing things on principle, most of the time privatization - again, undertaken by both Democrats and Republicans - is touted has having benefits to the tax payer. There are three basic ways this can happen: new revenues, reduced cost, or improved service. New Revenue Many governments are attracted to … [Read more...]
Archives for October 2009
Principles of Privatization – Part 1: Taxonomy of Transactions
This post kicks off a multi-part series on the principles of privatization. Cities and states across America have been looking at various types of privatization programs to save money or raise money in a tough economy. This has been surprisingly non-partisan, with proponents and opponents scattered across both parties. Democrat Mayor Richard Daley is a huge fan, as is Republican Gov. Mitch Daniels in Indiana. Democrat Gov. Ed Rendell pushed a toll road privatization. The Republican administration in the city of Indianapolis is looking at … [Read more...]