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

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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?

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Anonymous 0 Comments

My power company and trash service are excellent. Both are private and well run. My internet service (private) gives me an aneurism anytime I have to deal with them. I work for the federal government and our gov health care is absolute garbage at a high cost to the tax payer. The federal government does do well at ensuring I am paid regularly and have job security as well as retirement benefits.

Both private and public services have their strengths and weaknesses. Both are necessary to ensure a functioning society. The service in question needs adequate analysis to see whether privatization or gov is better for that particular service.

I would argue that the American government should take a good hard look at streamlining their systems to get rid of bureaucratic waste. The federal government could solve many of their problems if they just budgeted properly and held the various agencies accountable for their spending. This would free up funds to provide better services for citizens. Unless I missed something, the DOD has never successfully passed an audit for example.

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