Privatization

[NewYorkDragons80]

I've recently become interested in privatizing public services like Social Security or a local DPW or Police force for a small village. I don't understand how the private company makes money, nor do I understand how it is cheaper than a government-run service.

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[ChrisTheCop]

Did someone say Privatized police force?
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This message was edited by JustJon on 5-26-03 @ 8:26 PM

[NewYorkDragons80]

For a low-crime suburban village of 10,000-20,000

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[reeshy]

A private PD? Didn't a certain German leader have one of those a long time ago?

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[HBox]

I've recently become interested in privatizing public services like Social Security or a local DPW or Police force for a small village. I don't understand how the private company makes money, nor do I understand how it is cheaper than a government-run service.


Bad idea. See Robocop. And Robocop 2. And, to a lesser extent, Robocop 3.

Fucking OCP!

[JustJon]

I don't understand how the private company makes money
Which is why you'll be a wage slave all your life.

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[HordeKing1]

DRAGON - It's an excellent question, and Robocop jokes aside, it's a very serious issue especially the horrid idea of privatizing social security.

The way that private companies would make money in that scenerio is by taking a portion of your pension of the top to "manage" your fund.

Here are some more problems with privatizing social security:

1. Govt social security is immune to recession, depression and market conditions. A private company is not. In fact, as with the downward plunge of the stockmarket in the last 2 years, people's entire retirement funds can quickly be reduced to nothing. Since the overwhelming majority of Americans do not have an employer sponsored pension or contribute to an IRA or Roth IRA, social security is their only means of income. To take away a guaranteed source of income is at best a foolhardy thing to do.
2. The people most interested in privatizing social security are the people who stand to benefit the most from it - investment bankers, stockbrokers, accountants, lawyers, those with inside market information, etc.
3. Privatizing social security will bring economic ruin to millions of Americans.
4. Some proponents of privatizing social security make the claim that the govt's social secuity fund is running out of money, due to the aging of America and the extended life expectancy rate. This argument is totally without merit. In a worst case scenerio, such as a major depression that lasts over 30 years, there is enough money in the fund to last till about 2050. If money is taken from general funds instead of special funds, the money lasts indefinitely.
5. Social security isn't limited to retirement pensions. It also includes disability benefits, survivors benefits, medical benefits, and other benefits. If social security were privatized, an individual who made poor investment choices, (or whose stock drops b/c of a depression, would lose out on these benefits as well.


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[NewYorkDragons80]

Good answer. So, when a private company takes over, say, a public school, I was under the impression that it saves taxpayer money. From what you say, however, it actually costs more?

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"To insist on strength is not war-mongering. It is peace-mongering." -Senator Barry M. Goldwater "If gold should rust, what will iron do?" -Geoffrey Chaucer "Worship him, I beg you, in a way that is worthy of thinking beings.-Romans 12:1</marquee>
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[HordeKing1]

Privatizing schools and privatizing retirement pensions aren't analogous.

The main thrust for privatization is based on the belief that education in most public shcools sucks and that if privatized it would result in a better consumer product - i.e. education. Teachers would be evaluated by their work performance and product, just as employees are in a regular company.

There are proponents who believe it will ultimately be cheaper if privatized b/c many bueracratic expenses (such as the entire dept of education) could be eliminated. By contrast, the SSA (Social Security Administration) has operating costs of about 1% - far better than ANY private company.


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