.... The corporate right endlessly promotes “privatization” of public assets and public jobs as a cash-raising or cost-saving measure. Privatization is when the public turns over assets like airports, roads or buildings, or contracts out a public function like trash collection to a private company. Many cities contract out their trash collection. To raise cash Arizona even sold its state capital building and leased it back. The justification for privatization is the old argument that private companies do everything better and more “efficiently” than government, and will find ways to cut costs. Over and over we hear that companies do everything for less cost than government. But it never seems to sink in that private companies don’t do things unless the people at the top can make a bundle of cash; if the CEO isn’t making millions, that CEO will move the company on to something else. When government does something they don’t have to pay millions to someone at the top. So how do private companies save money? What costs do companies cut that government doesn’t? When you hear about “cost-cutting” here is something to consider: what if by “costs” the privatizers are talking about … us? The Human Cost A recent NY Times piece brought the human cost of privatization to people’s attention. In the article, A Hidden Toll as States Shift to Contract Workers, the Times’ Motoko Rich reports, With state budgets under pressure, Michigan says it can no longer afford the relatively high wages of the public workers, which range from $15 to $20 an hour, along with health and retirement benefits. According to Salary, certified nursing assistants in private long-term care facilities in the area earn a median salary of just over $25,000 a year, or about $12.25 a hour. Summary: when a public function is privatized the employees get paid less and lose benefits, but other state agencies pick up the costs that occur when people get paid less. Private managers and executives get a big chunk of the “savings” and then there are the costs to the larger economy from ever more people making less and less. nytimes/2011/11/07/business/as-states-shift-to-contract-workers-savings-are-not-clear-cut.html?pagewanted=all&_r=0 alternet.org/story/153093/privatization_nightmare%3A_5_public_services_that_should_never_be_handed_over_to_greedy_corporations
Posted on: Tue, 28 Oct 2014 05:01:01 +0000
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