The Truth About Privatization | Robert Reich

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Robert Reich explains why using the private sector for government services can have negative consequences.
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44 COMMENTS

  2. Medicare which didnt negotiate any prices for over a decade, paying overblown prices out of taxpayers pockets?

    Hundreds of examples of how government cant do anything efficiently, and how privatization can — NY central park, California failed rail, NASA vs Spacex, military satellite internet vs Starlink.

    We need government out of private markets for them to be efficient, and that includes stupid regulations, subsidies, favoritism.

    Just make an open competition for govt contract, add as few rules as possible, and pay the cheapest bid.

    That’s how US produced 10X the number freight ships during WW2 privately vs government.

  4. If we look to the airline industry, we see that since its deregulation, accidents have gone way down. Also, a ticket in real dollars, not even adjusted for inflation, still usually used to cost more in 1977 than today. Of course, elites like Reich could always afford it, but now regular people like me can afford to fly, but not back then.
    As for private prisons, my experience in one of them as an inmate was much better than in the unionized public facilities. The food was better, staff was more respectful, it cosr the taxpayers $6K less per year for me, and the facility was much newer. Privatization clearly works, but then the elites don't get to control, tax, and regulate everything 😊.

  8. Does ANYONE have any plans to actually deprivatise?!?

    Or are we sleepwalking into a cyberpunk future because it's boring and uncool to be political.

    Just be distracted and it's only about you you and you kids.

  9. The Americans should learn from Maggie Thatcher 🤮 as when she privatesed everything our waterways became extremely polluted and are mines and coal plants were closed. Never listen to the right wing! As they just want what's best for themselves and not the country, is why non liberal left-socialist party's should be in power all the time

    Edit-I'm not talking about party's like the ones in Vietnam I'm talking about the socialist ones that are in Scandinavia

  10. Absolutely correct,
    Privatisation of services that have close to monopoly by default harms the competitive edge of the nation. Areas that meet this standard include utility providers. Basically the government sells off entities you already own. Biggest result from what I can see here in Ireland and also our nearest neighbour. Privatisation leads to workers with less rights and near zero pension. While all those profits get hoovered up and diverted away from the people. Corporate owners also prefer to sweat their assets so the quality of the service suffers. Loose loose in the long run…

  12. Junk hauling. My city, Honolulu, essentially ended it's bulky item program by limiting the public to 5 items per month even if the truck go thru their area everyday. 5 Items isn't even a bed, headboard, footboard, rails, slats and mattress are six items. So now what was a free city service costs a minimum of $150 to dump (or $800 per pickup load if you have more.) There is the option of dumping yourself but that lines have become a wait of two hours or more at the dumps. The city has gone out of its way to make THAT easier.

    Public stupidly hasn't complained. Junk haulers were ready at the beginning with large fleets of new trucks to pick up the rubbish normally left out for pick up. Now young people take for granted they have to pay and it's become naturalized that it's a paid service not a responsibility of city government to keep the city clean or that it's not paid for in property tax.

  14. I worked for privatized and did not approved of how they crunched the use of supplies. They limited how much clients get while charging high fees. P.T.O. time was restricted during certaint times of the year. Few holiday pays and no holiday bonuses. When I had a union job it was so much better. I missed the holiday pay and P.T.O. I'm retired now and the young people of our country needs our support. I intend to vote to help the young families and future generations.

  15. Top of my head: DMV should be privatized, or at least partially privatized in the beginning to see if it works better and serves the customers better. Any monopoly, whether private or public should be avoided since it creates poor service all around, so all services should be both private and public and their performance and service record and customer feedback should be monitored and adjusted accordingly year by year.

  19. I am really struggling to think of a single example of privatization done right. I germany it completely messed up our once reliable train network, our post, our hospitals and our rents. Not a single popular party is arguing in favor of undoing these mistakes, it's so frustrating.

  22. Privatization often ends up being much more costly than when services are publicly financed. The private company at first underbids the current cost of providing the service. Then when they receive the contract, and the public entity that provided the service before is disbanded, and then the private company raises the price for performing the service to well above what it previously cost when it was a public service. This can be done because the private company knows that in order for the government to re-take over the service again that it will cost more to re-establish the program. The public is then stuck paying higher and higher taxes to get less and less service, because the private company needs to cut expenses in order to satisfy shareholder demand. The public cannot complain about it, because then both the government and the private company play the blame game by blaming one another for the reduction in service.

  24. Privatization has only one goal; that is, to access money that was raised by taxation. That is the only legal way for private individuals to enrich themselves from public money.

  25. bout time need more, i've been trying to explain this to people they dont get it , profits take money off the table that would go to services and puts it in a private citizens pocket. tax give away. and creates moral hazard

  28. They tried privatizing just about everything state-owned in Argentina in the '90s.

    Most of those firms not only jacked up rates sharply without much improvement – but they added billions to the foreign debt , thus contributing to the awful 2001/02 collapse.

    Later on, most of those firms had to be re-nationalized due to asset stripping, insolvency, unpaid taxes, etc. – and are now, mostly, doing much better.

    The few privatized firms that were well-run (like the phones), were left in private hands.

  30. Privatization of the healthcare system has been nothing but a failure. Insurance companies are getting filthy rich while those who pay for healthcare can't afford the premiums much less the deductibles that comes with privatized healthcare.

  31. IT MEANS NO REDRESS. IT MEANS NO GOVERMENT POWER IT MEANS TAX LOOPHOLES LIKE CHURCHES WHO OWN BIZ AND . IT MEANS DIVIDED AND CONQUERED PEOPLE. AND FOR ME IT MEANS THE DOCTORS ACTED LIKE COPS MY DOCTORS and TREATED ME LIKE I WAS A DRUG ADDICT AND . sorry been neglected in the doctors office and pain does not kill me.

  32. ‘Monied interest’, means hyper-capitalism, circa 1980 taking over, pursuing this fiction called TINA there is no other way, in total ignorance of the great achievements that Robert mentions. TINA essentially means capitalism rules, not democracy, the end of social programs, etc. That’s why the especially hate Social Security, public programs, etc. But war is good, etc.

  44. All I know is that the government is the one who runs the country wherever you go!

    I’ve never heard any private companies that rule the country!!! 😂😂😂

    That’s why the government should be the role model of its countrymen and the image of the country!!! 😂😂😂

    If the government is doing polygamy then the countrymen will follow because the government is our leader that runs the country right? If the government is cheating then so as the countrymen right? 😂😂😂

    The government has so many departments where they have their own duties and responsibilities!!!!

    Police department cannot do the job of US Navy for example!!! Police department cannot cover US Navy because they don’t know their job unless they will train them right??? Does it make sense???? The basic first aid training probably applies in every department to save lives 😂😂😂😂😂

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