Sunday, March 20, 2011

Privatization always looks best when you don't do the math

Frankly, just look to Mr. Walker's campaign contributors. Getting rid of recycling, for instance, bumps up the profits of Waste Management Corporation, which now controls most of our landfills. Surprising, eh?

Not really.


Fuzzy Privatization Math

Who crunched the numbers to show that private contractors would do a better job or at least the same job for less money than public employees? The Privatization Task Force Report says that no one did. On page 14 the report says it did no analysis “due not only to the fact that the actual cost of a privatized alternative will often not be known until the end of a full fledged competitive bidding process, but also because New Jersey state government agencies have difficulty calculating with precision the full cost of functions currently performed at the state level.” So, the sunny claims of big savings for the people of New Jersey are a guestimate, at best. and “To Be Decided” is the most accurate statement in the report.

1 comment:

TT said...

Might be a good idea to look at the military budgets to shed some light on privatization and the potential for ballooning costs. The military was essentially a Public Union. A closed shop with pensions, health care, the works. Funded by U.S. taxpayers. The cost savings here can be seen when you compare a Private pulling KP duty peeling potatoes working for much less than he (or she) could have made in the private sector. Now we are subsidizing private entities as support facilities (among other duties) and we have witnessed budgets that have gone through the roof (not to mention a couple of unpaid for lengthy military campaigns). Many of these private support entities are immune from cuts to their taxpayer subsidy through no bid contracts and the like. (Ring a bell Wisconsin?). In the end the question should be asked:
Where do you want your tax dollars to go? To private entities that often times pay no corporate tax in the state subsidizing the very wealthiest among us or would rather have those dollars go to the guy who picks up your garbage, cleans your street, teaches your kid, tests your water, inspects your restaurants..... etc..

It can also be said that entire service communities can be decimated when the economies of war contract. I feel, however, that is a discussion unrelated to this article.