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  • Yes privatization saves money because it enables people to make their own money, providing choices and freedom.

    Yes, I believe that privatization saves money by forcing people to save on their own and to take control of their own spending habits and more important saving habits. The act of privatization puts more control in the individual's hands rather than the government, and allows the individual to choose more flexibility on how to save money.

  • Yes, in the short run.

    Yes, privatization saves money, but only in the short run. This is because you are able to play employees less to do similar jobs. The problem is that sometimes the quality of work is poor, and in the long term, it may end up costing you more money to do the same work.

  • Yes the privatization of government services does save taxpayers money in the long run.

    Allowing local governments to privatize non-core functions saves the taxpayer money. Trash collection, janitorial service and transit are all duplicated by the private business community and be provided on a contract basis at a lower cost that can be accomplished by governmental units. Private contractors can use their increased buying power to purchase supplies at a lower cost and can lower labor costs by the use of non-labor union.

  • Does privatization save money?

    The private sector are cashing in on public sector contracts. Everyone knows that if your bid is lowest you get the contract, and then add on all the extras after to make your profit. Senior managers have no idea how to negotiate service level agreements. I have worked in both the private and public sector. Look at the schools academies program. The only way schools can balance the books is selling off assets and reducing staff numbers. Results have not improved in challenging schools that have become academies. Look at PFI costs. Have the trains improved? Have care homes improved? Have cleaning and catering services in hospitals improved? Have water utilities improved? Have gas and electricity improved? Ask any director of privatised organisation which comes first care or profit?
    Paul

  • Misconceptions about costs

    Governments need more than a sales pitch to make this decision. Promises of reduced costs are short-term and underplay the profit factor that drives up subsequent and costs. Meanwhile, dismantling the government system accrues costs which are not usually factored in.

    Furthermore, accountability is lost when governments give over direct responsibility for services.

  • Privatization Does Not Save the Taxpayer Money

    It is a myth that privatizing of government projects, often referred to as outsourcing, will save the taxpayers money. This was a prevalent theory that has most recently, through the data of numerous studies, been proven incorrect. It has always been assumed that private labor would be cheaper than government labor, but that is not always true. It has been clearly documented on numerous occasions, through well coordinated studies, that private workers received as much as 84% more than what would have been paid a governmental employee to do the same work. Out of a random test sample of roughly 3-dozen job contracts, over 90% cost more to have done by the private sector than by government sources. Any support of privatizing governmental projects based on the premise that it saves money, is obviously based on faulty evidence.


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