The issue of privatization as gone back to late 1800s, yet it is still debated almost 200 years later. But it’s not as simple as good and bad; sometimes there’s benefits, sometimes it’s detrimental, and sometimes it makes no difference. In order to understand Privatization effects, one must look at Privatization’s history, positives, and negatives. Since its origins in America in the 1800s, Privatization has changed, but it’s basics stay the same. Privatization is the idea of transferring government services to the hands on non-government entities, including the sale of government assets, a part of the government made into a publicly traded company, or the government contracting private contractors to do work. This is further shown when …show more content…
In this quote, the writer expands on how Privatization happens in three different ways. Outsourcing historically tends to be the most common form of privatization; think of private construction companies that pave public roads. They are not owned by the government; yet, are contracted out through the government. Whether this is for better or for worse depends on person to person, but this is what Privatization …show more content…
One of Privatization’s positives is shown when Savas says, “As long as it's managed well, the basic idea is good.” (qtd. In “Privatizing Government Services”.) This quote shows that Privatization is not inherently flawed. That, if done right, is a good thing. A successful example of privatization would be in the late 1970s when the Arizona metropolis let its public service department bid against private companies for a few of the districts they serve. After losing 2 bids, the public sector hired new managers, improved their productivity greatly, and cut costs. (Worsnop, Richard L. “Privatization”). This shows how privatization can be used to help the consumer. The competition that privatization provides causes a better service or product for the consumer; i.e., the whole public. Privatization success comes mainly from competitivity. Companies competing with one another forces a focus on the customer. (Worsnop, Richard. “Privatizing Government Services”.) When the government provides services that are slow or bad, privatization provides a competitivity which forces it to