Continuing with my series on privatization of government services, today I look at the question of how privatization creates value. You can also read part one on the types of transactions. While a few people just don't like the government doing things on principle, most of the time privatization - again, undertaken by both Democrats and Republicans - is touted has having benefits to the tax payer. There are three basic ways this can happen: new revenues, reduced cost, or improved service. New Revenue Many governments are attracted to … [Read more...]
Archives for October 2009
Bad Example
"For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath." - Matthew 25:28 "The word of the Cross is to those who are perishing foolishness" - I Corinthians 1:18 Christian apologists have sought to find various digestible moral meanings in the harsh story of the Parable of the Talents, but what if the intent was merely observational? Rather than instructing on how we should live our lives, maybe the parable just relays an … [Read more...]
Principles of Privatization – Part 1: Taxonomy of Transactions
This post kicks off a multi-part series on the principles of privatization. Cities and states across America have been looking at various types of privatization programs to save money or raise money in a tough economy. This has been surprisingly non-partisan, with proponents and opponents scattered across both parties. Democrat Mayor Richard Daley is a huge fan, as is Republican Gov. Mitch Daniels in Indiana. Democrat Gov. Ed Rendell pushed a toll road privatization. The Republican administration in the city of Indianapolis is looking at … [Read more...]
Failure of Ambition
Why did the Midwest fall behind? Why do its big cities continue to lag the top performers nationally? It's easy to blame this on structural problems, but could the problem simply be a lack of will to compete? Burgh Diaspora points us at this Time magazine article on Charlotte. As I previously noted about Nashville, Charlotte is a city of high ambition. They look at the boomtowns of the region like Atlanta, Dallas, and Phoenix and say, "Why not us?" Quoting: "'To understand Charlotte, you have to understand our ambition,' says chamber of … [Read more...]