5-30-07 Privatization at work

Here's a sample of what privatization is all about: A family in Gilbert, Arizona, lost their home to a fire. The privatized firefighting company that responded arrived too late to save it. But because the home was in an area that wasn't "subscribing" to the privatized firefighting company's services, there is a bill for them responding.

Not only has this family lost their home and all their belongings, they now also owe the privatized firefighting company a whopping $10,000 for "services rendered."

Read the story here.

The problem with privatizing community services and infrastructure is that these things which are traditionally funded with tax money are given the added burden of "turning a profit." When you add the burden of profit, the end cost is more than it was when funded by taxes. This is a very simple equation, and does not take any sort of genius to figure it out. Yet, the proponents of privatization claim reduced taxes, and reduced costs for the public as a result of more efficient operation, when making their case. It just isn't true. It simply cannot be true when the burden of profit is added.

But adding the burden of profit isn't the only problem with privatization, as the above story demonstrates. As is the case with privatized healthcare, it's all about the billing. It isn't about providing great service, it isn't about the product, and it isn't about increasing efficiency. With privatization, it's all about the billing and the pumping up of accounts receivables each quarter.

Only a corrupt (or extremely stupid) politician would advocate privatization of anything, due to being connected in some way with businesses that stand to gain from it.