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?
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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?
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
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