New study on privatization claims it simply does not work, and documents it. In fact, privatization sucks.
Here are some impacts the Cornell University Hebdon Report found that result from privatization:
-diminished quality and access to services
-lower employee morale, productivity and training
-worker exploitation through lower wages and benefits
-increased discrimination against minorities and women
-loss of government control and sovereignty
-lost constitutional and other legal rights
-decreased efficiency as a result of difficulty monitoring and administrating contracts
-loss of accountability and control
-increased corruption, bribery, kickbacks, bid-rigging, campaign donations, low-ball bids, and contractor bankruptcy
-higher direct costs or hidden costs to pay for the loss of pensions and benefits of public employees
-increased conflict, strikes, grievances, and arbitrations
It is time to argue that many businesses, small or large, are driven to profit, to the extent that they are corrupt, and if included in privatization of government work, for example utilities, they corrupt the government itself. I am tired of business always being given a free pass by the rightwing when in effect business is usually more corrupt than government.
But we have to make and prove these claims. For example, the corruption in Medicare and Medicaid is largely in the white collar provider community, not in the blue collar beneficiary community. Can anyone find the billions handed to the government contractors for Iraq and Afghanistan--no but you can bet some of it came back to affect elections on the right. The inability of the right to understand the need for tight regulations in the financial scams (actually frauds) is amazing as they posture themselves as driven snow. What liars and crooks.
And as a side benefit, when services are privatized, citizens lose view of what is happening, and they have no right to demand information from the corporation. Add to that the denial of trial for malfeasance caused by binding mandatory arbitration, and the citizenry is fully hogtied and delivered to the butchers.