sec2-1_privatization - Privatization of Public Goods INDV...

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Click to edit Master subtitle style Privatization of Public Goods INDV 102 Sect. 45
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Relations between Government  and Business n To what extent should government turn  over traditional government activities to  businesses (i.e. . Schools, prisons, health  care, welfare help lines, etc.)? n Alternately, to what extent should  government use business to avoid  constitutional issues (i.e. . Patriot Act; 
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2000 Privatization Survey n Do you favor or oppose privatizing gov’t  services and operations? n Favor 32%, Oppose 44%, dk 25% n If there is a problem of gov’t services is it  due to admin/politicians or public  employees? n Admin 49%, Emply 13%, Both 21%, dk 17% n What is more important when privatizing, 
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Publics and privates share: n People buy goods and services from public and  private services n In private they vote with dollars, in public with  ballots n Publics better handle natural monopolies (i.e.,  circumstances that prevent a free market) n Competition exists in both: Privates compete for  $ in market; Publics competition between parties  and candidates for control. n Invisible hand works in both: Publics – self  interest achieved only if citizens happy w/gov’t; 
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Differences n Elections 2-6years based  on promise or record n Citizen inform. is not  complete, rarely do we  have full info about policies  of gov’t. n Gov’t better for national  choices or services n Monopolies easier to deal  n You can decide to buy  Ben and Jerry’s or  Haagen Daaz daily n Customers can become  experts on things they  buy n Market is better for  individual choices n Monopolies strictly 
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Privatization fiascos n Great Britain – telecomm., gas, electricity  and water were privatized in 1980’s
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This note was uploaded on 04/07/2009 for the course INDV 045 taught by Professor Derekarushbrooke during the Spring '09 term at University of Arizona- Tucson.

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sec2-1_privatization - Privatization of Public Goods INDV...

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