Ask me a year ago and I would say any kind of privatisation is stupid, why let someone earn a profit, when if it was run by the govt the profit that would have gone to CEOs will go back into the govt.
However I didn't account for the fact that the government may be doing things Incredibly inefficiently when another company could come in and do the same job for half the price, even with a load of profit they could still be cheaper.
Things like the post office are stupid as they made money and we would have got the same amount of money we sold it for in a couple of years.
I *thought* if we nationalise the railways and buses again, there will be effectively no profit margin as it will go back into the government, so the prices would be cheaper. Now I'm unsure.
When is (if atall) privatisation a good thing? What would be bad about a state funded near fully privatised NHS?
I'm not a McDonalds burger. It is MkJackary, not Mc'Jackary... It's Em Kay Jackary. Mkay?
Comments
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
If you have for example, a railway line out to some arse end town that might be invaluable the to economy of the town, but highly unprofitable for the rail company. So they won't run it. Similarly if they determine running freight makes more money than moving people, they won't bother, so government always has to step in at some point with subsidies and so on, it's a question of how far you want to go.
Healthcare is another example. The fundemental premise of the free market is that everyone is a rational actor and thus makes rational decisions that optimise the market to the consumer. But with healthcare that breaks down, you can't be a rational actor if you're not conscious, or if I tell you you've got to buy this pill or you die.
The free market works well for consumer products and services where there is genuine choice of what to buy or whether to buy, but not when you move away from that.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
In my view the state should control the basic utilities - power and water, the national rail infrastructure, the NHS and the education system - I'm not convinced by academies or religious schools. It's also worth pointing out that there's the third sector - for example not for profit organisations - which is a good way to mix commercial disciplines and acumen with social responsibility. A good example are housing associations. There are also cooperatives in which the employees own the company - think the Wine Society and John Lewis.
Remember, it's easier to criticise than create!
For a private company not in a monopoly position there will always be downward pressure on price. Once an entitlement is only beholden to shareholders there is obviously a huge incentive to increase the price to the maximum that the market will bear.
Originally, I was dead against privatisation of essential services like the utilities when it was first introduced. Water I think it was. How was it morally right to make a profit from them, I asked myself. It took me a bloody long time to get my head around it, but I came to realise just how terribly inefficient public services were. I now think that opening up the market to competition has largely been a good thing, the efficiencies meaning utilities becoming cheaper for the consumer.
As for Comrade Corbyn and his desire to re-nationalise the railways, the bloke must be stark, staring, raving mad. Anyone remember what British Rail was like? Well I do, and from first-hand experience, it was a national joke, and utterly shite.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
+1.
Remember, it's easier to criticise than create!
at management level.