Is privatiization a good thing?
The article I just read is about privatization in the US but it is the typical IMF approach to fix the economies of countries such as Nicaragua. Various countries (Bolivia, for example) have resisted. What is reality?
The article titled 5 ways privatization is fleecing American taxpayers shows some examples of how privatization has been a huge mistake.
So how has this wave of privatization worked out? Has privatization saved taxpayers money and improved services to citizens? Simple answer: of course not. If a company can make a profit doing something the government had been doing, it means that we’re losing out one way or another. It’s simple math. And the result of falling for the privatization scam is that taxpayers have been fleeced, services to citizens have been cut way back and communities have been made poorer. But the companies that convinced governments to hand over public functions have gotten rich off of the deal. How is this a surprise?