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
The pro-business side will say that in a changing world, the business has an incentive to optimize, iterate, improve efficiency, and uptake new technology to better maintain itself. Whereas government has no such market imperative, and will not change with the times.
The anti business side notes that businesses are driven by profit, and in search of profit may not be ideal shepherds of what is best for society. And, when monopolies emerge because who is going to pay to dig up the streets 7 times to provide competing gigabit ethernet cables or water mains, prices can begin to extort the customers with no free market remedy. Businesses have also been happy to reap the profits in good years, but when disasters emerge they declare bankruptcy and leave their messes for “the people”.
These perspectives both have merit.
Latest Answers