Power of Story
Send a Tweet        
- Advertisement -

Share on Google Plus Share on Twitter 1 Share on Facebook 2 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (3 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)
OpEdNews Op Eds

The Public Is Being Looted By Privatization And Deregulation

By       Message Paul Craig Roberts     Permalink
      (Page 1 of 1 pages)
Related Topic(s): ; ; ; , Add Tags Add to My Group(s)

Supported 4   Must Read 3   Well Said 3  
View Ratings | Rate It

opednews.com Headlined to H3 2/23/16

Author 12495
Become a Fan
  (401 fans)
- Advertisement -

Reprinted from Paul Craig Roberts Website

The Deregulation Swindle
The Deregulation Swindle
(Image by The Film Archives, Channel: thefilmarchives)
  Permission   Details   DMCA

The privatization movement and the deregulation movement have turned out to be failures. Privatization in Britain under the Thatcher government had its origin in the belief that the absence of incentivized managers and shareholders with a stake in the bottom line resulted in nationalized companies operating inefficiently, with their losses covered by government like the big private banks' losses today. Thatcher's government believed that privatizing socialized firms would reduce the UK budget deficit and take pressure off the British pound.

- Advertisement -

Today privatization is a way that governments can reward cronies by giving them valuable public resources for a low price. When the UK government privatized the postal system, there were news reports that one postal property in London alone was worth the purchase price of the entire postal service.

Privatization is also a way that conservatives, who object to social pensions and national health, can stop "taxpayer support of welfare." In the US conservatives want to privatize Social Security and Medicare. In the UK conservatives want to privatize the National Health System.

It looks like the UK Conservative government is taking a step in the direction of privatizing the national health system, one of the great social reforms in British history.

- Advertisement -

In the US there are advocates of privatizing the national forests. In some ways the forests are already privatized as private timber companies are allowed to "harvest" the trees at favorable prices, and often the government even builds the roads for them.

In the US, deregulation has resulted in high prices and poor service. When airlines were regulated, they competed on service. They had spare equipment so that mechanical problems did not mean cancelled flights. Stopovers did not involve additional costs.

When AT&T had a regulated communication monopoly, the service was excellent and the price was low. Today we have a large number of unregulated local monopolies, and the prices are high. The bottom line and managerial bonuses are more important than service. Customers experience constant service interruptions. Maintenance and broadband improvements are sacrificed to executive salaries.

In the US and UK public university tuition has risen so high that the universities have in effect been privatized. When I went to college there was no such thing as student loans. In-state tuition was nominal, and colleges provided inexpensive housing and meals. Most students in state universities were residents of the state.

Many aspects of the US military have been privatized. Services that the military formerly provided in-house are now contracted out to private companies at high costs.

The case for privatization and deregulation needs to be reexamined in light of the evidence and the real reasons they are being pursued.

- Advertisement -

 

- Advertisement -

Supported 4   Must Read 3   Well Said 3  
View Ratings | Rate It

http://www.paulcraigroberts.org/

Dr. Roberts was Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration. He was associate editor and columnist with the Wall Street Journal, columnist for Business Week and the Scripps Howard News Service. He is a contributing editor to Gerald Celente's Trends Journal. He has had numerous university appointments. His books, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is available (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Libya - The DC/NATO Agenda And The Next Great War

A Story...The Last Whistleblower

The Road to Armageddon

American Job Loss Is Permanent

Pakistan TV Report Contradicts US Claim of Bin Laden's Death