HW 3 - Matthew Syers March 12, 2008 Homework 1.2 1....

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Matthew Syers March 12, 2008 Homework 1.2 1. Governments have attempted to privatize many different services we often associate with government. These may include municipal bus systems, hospitals, education, prisons, trash disposal, and highways. Select two of these. What are the advantages and disadvantages of privatizing in each case from the point of view of A) the government, B) the population using the service, and C) the provider of the service? “Nationwide, proposals to privatize public schools and hospitals are a growing concern to the tax payers and state workers… some 15% of hospital beds are now owned and operated by for-profit corporations (Art 1.2, p 8).” America is built on free market trade capitalism. This is what gives us the freedom of choice and consumer sovereignty. Profit corporations see the demand for people seeking better health care and educational services. These corporations buy out hospital space and offer a “stronger” approach to health care, as well as providing “stronger” educational options with privatized schools. These services are generally consumed by the wealthier income level people. “43 million Americans currently lack even minimal health care coverage; as the health care system shifts into for-profit mode, these people are at risk of falling too ill to compete in the marketplace or even to participate freely in governance (Art 1.2, p 9).” This puts strong pressure on the American government, mainly because it forces the government to seek solutions to help aid the underprivileged people who can not afford health care. “If education were to become a buy and sell proposition, as some conservatives advocate, large numbers of citizens will go uneducated and unable to exercise their rights or protect their freedoms (Art 1.2, p 9).” This creates problems for the people who must attend a public school, mainly because a private school education is considered to be of higher quality. Our government tries to keep its capitalist economy. The less wealthier people are at a disadvantage and are forced to be reduced to poor health care and poor public education systems, when in contrast the wealthy are able to pay for a higher level of health care and education. The government provides its citizens with public schools and hospital service and even forms of medical coverage for those who are not able to afford it. Now that coverage does not apply to every person, but it is still an attempt to help those who are eligible. For-profit corporations are not at fault because they are providing
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a “better” health service and education to people who seek the demand. They are just
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This note was uploaded on 04/20/2008 for the course ECO 110 taught by Professor Dr.duffy during the Spring '08 term at SUNY Plattsburgh.

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HW 3 - Matthew Syers March 12, 2008 Homework 1.2 1....

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