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Why do people think that privatization would make things like infrastructure and education​ worse?

Wouldn't it improve things, like with railroads, water, power, etc?
Xuan12 · 31-35, M
The problem stems from monopolies. Take something like the power grid, it's too expensive and there's not enough space to build multiple sets of poles, transformers, and power plants, so whoever owns the existing ones would have a monopoly, and wouldn't be bound by market forces at all. They'd have little reason to improve their service, reduce their prices, or attend to their customers. That's why power is run by publicly owned coops, and/or highly regulated. Same with water.

Many railroads are privately owned I think. In fact, there's one between Orlando and Miami due to open this year. The reason a lot of track is publicly owned or at least subsidized though, is because railway profits dropped off dramatically after the automobile and airplane took most their passengers. Many rails were looking at going under, so in order to preserve the service and infrastructure, a public deal was reached.
SW-User
When your incentive is profit then all you care about is profit. Despite what conservative propaganda has to say that doesn't lead to everyone's best interests being served. See private health insurance, private prisons, and for profit colleges.
Invisible · 26-30, M
@KaliKali: When profit is not an incentive, then there is no incentive to make the most efficient use of funding. Privatization also allows for voluntarism, which enables people to actually choose what they spend money on. Is economic liberty a bad thing?
SW-User
[quote]When profit is not an incentive, then there is no incentive to make the most efficient use of funding.[/quote]

Sure there is. The incentive can be helping as many people as possible for example. You'd make the most efficient use of your funding to achieve that. The profit incentive isn't some magical thing, you've been duped by people trying to maximize their profits.

[quote]Privatization also allows for voluntarism, which enables people to actually choose what they spend money on.[/quote]

Assuming there ins't a monopoly.

[quote]Is economic liberty a bad thing?[/quote]

Yes.
tynamite · 31-35, M
Privatisation causes cutting services and higher prices.
Invisible · 26-30, M
@tynamite: Why do you think that's ​the case? Privatization allows for competition, which brings down costs and improves service. Public services are just a government enforced monopoly.
tynamite · 31-35, M
@Invisible: There is NO competition with railroads, water, electricity, gas, public transport, healthcare because they are NATURAL monopolies. It costs MILLIONS of dollars for someone to start a competing company or a competing company cannot be created.

When Margaret Thatcher privatised the energy companies in Britain, the companies formed cartels and all the prices went up at the same time. Energy prices in Britain keep going up every couple of years all at the same time and they were MUCH LOWER under nationalisation.

Look at taxi companies and universities. If there are competing taxi companies and universities all in the same area, why do they ALL charge the same price?
Cierzo · M
@tynamite: Great answer. The key point is that certain services (usually basic ones like the ones you named) are natural monopolies, and it is very dangerous to leave then the hands of private businesses looking just for profit.

Those services should be run by the state, let the market rule the rest of them, but with strict laws and state control to ensure competition and avoid the creation of oligopolies
tynamite · 31-35, M
I can't wait for privatised roads you have to pay to drive on and privatised police you have to pay to enforce your rights. 😂
katielass · F
Because some people depend on the donations of those running the public entities.
swirlie · 31-35, F
Keep in mind that any government-owned entity will be run very poorly, because the government is not in the business of knowing how to run a railroad for example. Quite frankly, the government is totally incompetent at running anything except politics. This is what we have experienced big time in Canada. Privatization of an entity (like the railroad or education) actually makes that entity far more cost effective as well as better serving to the end-user.

 
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