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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Private enterprises are profit driven. They may make individual decisions based on things like morality or public good but their overarching motive is always profit. A private enterprise that fails to honor this rule will be replaced by competitors who do.
The main benefit of this profit drive is efficiency. In most cases, that’s the easiest way to make more profit.
The problem mostly comes from one of two areas.
Sometimes the sacrifices we make for efficiency are socially unacceptable. We want cheaper water but we still want it clean.
Often, increased efficiency means occasional shortages. That’s fine when the product in question is iPhones, not so nice when it’s food.
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