Eli5: How does privatization of an essential public good/service/infrastructure work and what are the reasons behind it?

Question

From what ive read, consumers are definitely not the beneficiaries in such arrangements. Why do governments do this then? Why give up ownership and control of vital stuff (e.g. water, utilities, highways, etc.) to private – and often – foreign entities?

In: 142

Answer 1

governments do this, particularly in america, because their incentives are poorly aligned. They get donations from an industry lobby that wants to privatize something and then it’s just a fun way of robbing the tax payers.

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the fun fact of almost all of those privitized services is a worse service for a higher price