Comments on: The basic fallacy of “privatization” http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/ Democracy. Unwashed. Wed, 06 Sep 2023 22:36:47 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Dwight Holmes http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-120 Dwight Holmes Thu, 03 Mar 2011 14:17:38 +0000 http://dirtyhippies.org/?p=121#comment-120 Let me know when UPS or FedEx can deliver a letter from my home on the east coast to Montana, usually in 3 days, for 44c - along with a whole crappile of junk mail for pennies apiece. USPS has to deliver everything to everybody at the same cost regardless of distance. As it should be. Public entities have to serve the entire citizenry. As it should be. Unless we make our *public* entities as strong as possible, all of us will suffer the consequences that we see quite visibly in our society already, borne of egregious levels of ever-increasing inequality, on a scale unimaginable even 30 years ago. Let me know when UPS or FedEx can deliver a letter from my home on the east coast to Montana, usually in 3 days, for 44c – along with a whole crappile of junk mail for pennies apiece.

USPS has to deliver everything to everybody at the same cost regardless of distance. As it should be.

Public entities have to serve the entire citizenry. As it should be. Unless we make our *public* entities as strong as possible, all of us will suffer the consequences that we see quite visibly in our society already, borne of egregious levels of ever-increasing inequality, on a scale unimaginable even 30 years ago.

]]> By: Adam Lambert http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-84 Adam Lambert Wed, 02 Mar 2011 23:12:17 +0000 http://dirtyhippies.org/?p=121#comment-84 actually, Chip, I am a CPA and spent virtually my entire 19 year career working in international accounting firms - advising non-profit and for profit entities in a number of areas. I have seen the internal issues and challenges, which are different for both, and quite frankly, it is funny that you mention customer service (outsourced to India), which I can cite many examples of very poor customer service with (1) credit card companies (2) insurance companies (3) banks and (4) consumer product companies. Also, the USPS is not a public government entity as you cite - it is a public/private entity. But that being said, I've had things lost by FedEx, I've had UPS damage goods delivered to me as well. I also work with the IRS on a number of matters for clients, and have had some very positive experiences (as well as negative ones). So, I am going to have to completely disagree with you here - and with the experience that I've worked in the for-profit sector my entire career and with literally hundreds of for profit and non profit entities. actually, Chip, I am a CPA and spent virtually my entire 19 year career working in international accounting firms – advising non-profit and for profit entities in a number of areas.

I have seen the internal issues and challenges, which are different for both, and quite frankly, it is funny that you mention customer service (outsourced to India), which I can cite many examples of very poor customer service with (1) credit card companies (2) insurance companies (3) banks and (4) consumer product companies.

Also, the USPS is not a public government entity as you cite – it is a public/private entity. But that being said, I’ve had things lost by FedEx, I’ve had UPS damage goods delivered to me as well.

I also work with the IRS on a number of matters for clients, and have had some very positive experiences (as well as negative ones).

So, I am going to have to completely disagree with you here – and with the experience that I’ve worked in the for-profit sector my entire career and with literally hundreds of for profit and non profit entities.

]]> By: David Kaib http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-83 David Kaib Wed, 02 Mar 2011 22:52:15 +0000 http://dirtyhippies.org/?p=121#comment-83 Chip, Adam may or may not have worked in the corporate sector (I find it off to speak of gigantic collectivities as "private") but comparing stereotypes of bad government agencies with stereotypes of good corporations isn't logic. (Also, the idea that everyone who has experience X believes Y is almost always false.) I've used good and bad DMVs, rarely been disappointed with USPS, and sometimes been disappointed with UPS. The magic of the market depends on assumptions that rarely exist anywhere outside of economics textbooks. One more thing - if the consumer is a state legislature or Congress, then the corporation which benefits from corporatization (great term for this, bu the way) doesn't need to win over citizens. And the only way to believe they will is if citizens complain to their legislators who act on their demands -i.e. politics. So what role is the market playing here? Either politics works and we don't need it, or it doesn't and the market serves to enrich corporations and legislators at the citizens' expense, who don't figure in the demand curve. Chip, Adam may or may not have worked in the corporate sector (I find it off to speak of gigantic collectivities as “private”) but comparing stereotypes of bad government agencies with stereotypes of good corporations isn’t logic. (Also, the idea that everyone who has experience X believes Y is almost always false.)

I’ve used good and bad DMVs, rarely been disappointed with USPS, and sometimes been disappointed with UPS. The magic of the market depends on assumptions that rarely exist anywhere outside of economics textbooks.

One more thing – if the consumer is a state legislature or Congress, then the corporation which benefits from corporatization (great term for this, bu the way) doesn’t need to win over citizens. And the only way to believe they will is if citizens complain to their legislators who act on their demands -i.e. politics. So what role is the market playing here? Either politics works and we don’t need it, or it doesn’t and the market serves to enrich corporations and legislators at the citizens’ expense, who don’t figure in the demand curve.

]]> By: Chip Wagner http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-82 Chip Wagner Wed, 02 Mar 2011 21:56:23 +0000 http://dirtyhippies.org/?p=121#comment-82 Adam, from the structure of your argument, I would guess you have never actually worked in the private sector. But even assuming you have, you are missing two huge considerations: productivity, and customer service. Improved productivity by firms that are able to specialize, innovate, leverage scale and invest in technology is what enables many private firms to offer superior quality and higher service at a lower cost than government entities (think UPS and Fedex vs. USPS. And the customer service is simply a concept that is does not exist within the monopoly structure of most government agencies (think IRS and DMV). Adam, from the structure of your argument, I would guess you have never actually worked in the private sector. But even assuming you have, you are missing two huge considerations: productivity, and customer service. Improved productivity by firms that are able to specialize, innovate, leverage scale and invest in technology is what enables many private firms to offer superior quality and higher service at a lower cost than government entities (think UPS and Fedex vs. USPS. And the customer service is simply a concept that is does not exist within the monopoly structure of most government agencies (think IRS and DMV).

]]> By: Adam Lambert http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-81 Adam Lambert Wed, 02 Mar 2011 19:40:50 +0000 http://dirtyhippies.org/?p=121#comment-81 yay....Annette is posting a comment :-) Even though it is a sad (but true) observation.... yay….Annette is posting a comment :-)

Even though it is a sad (but true) observation….

]]> By: Adam Lambert http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-80 Adam Lambert Wed, 02 Mar 2011 19:40:11 +0000 http://dirtyhippies.org/?p=121#comment-80 oops.....the "d" got chopped off the end. Gonna fix that now. oops…..the “d” got chopped off the end. Gonna fix that now.

]]> By: Annette Bellacosa http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-79 Annette Bellacosa Wed, 02 Mar 2011 19:39:26 +0000 http://dirtyhippies.org/?p=121#comment-79 I recently was speaking with some friends about what is going on in our country. It became clear to me that we are not really living in a democracy. It is now a "corporatocrocy". My newly coined word for the state of our nation. The corporations have taken over and the middle class is slowly disappearing. It is very, very sad. I recently was speaking with some friends about what is going on in our country. It became clear to me that we are not really living in a democracy. It is now a “corporatocrocy”. My newly coined word for the state of our nation. The corporations have taken over and the middle class is slowly disappearing. It is very, very sad.

]]> By: Jon http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-78 Jon Wed, 02 Mar 2011 17:38:52 +0000 http://dirtyhippies.org/?p=121#comment-78 I've seen them. They sit on the power lines in every state... I’ve seen them. They sit on the power lines in every state…

]]> By: Michael Leffew http://dirtyhippies.org/2011/03/02/the-basic-fallacy-of-%e2%80%9cprivatization%e2%80%9d/#comment-77 Michael Leffew Wed, 02 Mar 2011 16:38:48 +0000 http://dirtyhippies.org/?p=121#comment-77 Where can I find this pro-corporate/"free market" crow. Where can I find this pro-corporate/”free market” crow.

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