4.1 London, England
In 1996, Britain privatized its railways, contracting private companies to operate trains and maintain the rail lines. The argument for privatizing public transportation is that private companies pursue cost-minimizing strategies, which means that public transportation can benefit from the more efficient outcomes. This has proven to be the case in London, where the central government’s spending on the railway is mainly payments to franchised train-operating companies and Network Rail, which is a semi-public body. Overall, costs for the railways have been lowered in London “reducing operating costs by about 10 per cent” (White, 2009).
Private companies tend to shift the main focus of public transportation from service
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4.2 Chicago, United States
In the past, United States’ infrastructure were mainly developed and maintained by the private sector, this included major parts of transportation like railroads, roads, bridges, etc. This contributed to a significant proportion of the nation’s GDP (Wright & Murphy, 2009). Due to various financial crises, the United States government took over most of the nation’s infrastructure. This theoretically can be perceived as the right action as government ownership can help in keeping the firms afloat.
In the United States however, the government ownership of infrastructure that were previously from the private sector created many problems. The government’s agency limitations and regulatory constraints created problems like insufficient revenue, which could have been easily managed if it were run by the private sector. “The federal gasoline tax, which is the primary source of highway user fee revenues, has not been raised since 1993 and Congress has recently been forced to add general funds to the Highway Trust Fund to close what would otherwise be a deficit” and “Aviation Trust Fund has been running annual deficits of $3 billion--$5 billion that have been covered by general taxpayer funds... forced to cut back operations, which significantly increased flight delays, when the government
The Private Sector is an important entity within the Homeland Security Enterprise. The term “enterprise” includes all Department Homeland Security’s (DHS) partners and the 22 different federal agencies to work together with the same common goal (Department of Homeland Security, 2015). One of DHS’s partners is the Private Sector. The Private Sector is considered a single, overarching entity that is comingled within the society (APUS Week 1 Lesson). In simple terms, the private sector is entities that are not part of the public entity or the government and operates to make profit. Unlike the public sector (federal, state, or local government agencies), who operate for the citizens and does not operate for profit. As a single and overarching, entity, the private sector’s roles and responsibilities include: planning, critical infrastructure, partnerships, science and technology, and resilience (APUS Week 1 Lesson).
There are two main culprits of the public transport industry responsible for this mess. These are namely the bus and rail companies who despite, receiving large government subsidies, simply can't rectify their problems.
A weak fiscal position can cause weak government ability to provide security for property rights, and makes it harder to borrow in the face of security crisis’s. Citizens receive value from government’s role in making and enforcing laws that give citizens the opportunity to freely pursue opportunities. The US is a developed economy but don’t mean its government doesn’t need to retake reform measures. Having an orderly governing body allows private citizens to make long term investment decisions about their personal resources. The government involvement is vital because it provides the best opportunity to accomplish its national investment and growth goals through entrepreneurial spirits of all citizens.
In 2013 the American Society of Civil Engineers released a report card after carefully analyzing United States infrastructure. The experts awarded the infrastructure a D+, which is usually considered a failing grade. Experts also pointed out the fact that most United States infrastructure is approaching the end of their expected life-spans. Those who are in charge of maintaining and repairing infrastructure have expressed a dire need for more funding. Deficient infrastructure has already caused thousands of deaths and will continue to do so if Congress does not step up. Congress should increase taxes in order to maintain and repair our failing infrastructure. Increasing taxes would not only help to ensure the people’s safety but it would also prevent the government from going further into debt and it's a fairly quick solution.
Supporters for privatizing air traffic control claim that it is time to address long delays and inefficiencies in an aging airspace network that doesn't fully utilize modern aviation technology. UK-based NATS projects delays will exponentially increase from the current 90,000 minutes a year to approximately 4 million in the next 15 years unless the United Kingdom government invests in modernization by replacing outdated airspace technology by switching to satellite-based control. In the United States the federal government has a history of moving at a snail's pace when it comes to updating national infrastructure. For example, New York City just completed a subway upgrade that was originally approved in 1929. A revamping of the system similar to the innovative changes that transformed call center voice recording equipment from simple recording devices to systems that capture conversations and enable digital archiving and instant sharing via cloud-based technology, will help modernize our airspace management strategies. The time to act is now if we want to avoid problems in the
This decision come with its share of consequences. As it was noted, the centrally generated transportation system was relatively clean and very efficient. The trackless trolleys as well as electric buses powered by overhead wires transported the public with ease across the towns. However, with GM taking over, there was a brewing conspiracy. That was, to destroy the mass transit and convert the public to reliance on private automobiles, which in fact depended on foreign oil.
This journal will look at the economy as a whole and what that means for the growing cost of infrastructures. Should we be combining public and privately owned utilities? Will federal funding be enough to sustain our nation? By defining the pros and cons of combining public and private, these questions can be answered. By the start of the next decade, this current state could drastically change.
“Public companies have been the locomotives of capitalism since they were invented in the mid-19th century. They have installed themselves at the heart of the world’s largest economy, the United States.”[Economist, p.1] “Public companies have shown an extraordinary resilience. They have survived the Depression, the fashion for nationalization, and the buy-out revolution of the 1980’s.”[Economist, p.8] Even though they do face some mighty large challenges ahead, they will hold strong in the near future but may eventually continue a downward trend as other
There are those that might suggest that our country would be better off with no federal government. On the other hand, without a federal government, the protection of enemies from within and without quickly becomes unregulated. Another role of the federal government is to build and maintain federal parks and highways. Although there is obviously a need for the federal government, it is also obvious in very recent years that the federal government’s intrusive nature into business and individuality has exceeded the founders’ initial expectations. The trumping of our state and local government rights by the federal government was not predicted by our founding fathers but instead they believed in the power of the individual that unleashed this
Privatization is the act of transferring ownership of a specified property or business operations from a government organization to the hands of a privately owned entity. This as well includes the transition of ownership from a public company to a private company. During the 21st century, the economy of United States have changed due to the industries that have been selected to be privatized by the government such as transportation, education and health care. Private sectors in the United States have taken control of these industries which is formally controlled by the government. It is noticeable that, the presence of privatization in the United States during the 21st century has affected the United States citizen negatively. The transportation
On the local level, a nation is only as effective as its government. When a government takes the position that government is incompetent, unable to deliver services better than private industries, the nation has no incentive to demand that government work. They prefer for government to dismantle operations, forfeiting them to private companies.
One of the many arguments is that most, if not all public sector service(s) service is monopolistic. Often time, there is one source of supply for a government service. For example, residents of a city have one fire department, one police department, and one system of public education. Even though each of those entities, many of them have different branches, they are all fall under
Failure to recognize the Feds role in the economy and to adjust to globalization characterized the 80’s (Sachs, 2011). The long-term effects have been a “hollowing out” of American industries and the middle class have suffered the most, loosing employment as well as their homes (Sachs, p. 30). Manufacturing, textile, auto, and apparel jobs have all been lost to globalization, save for the highly skilled level positions (Sachs). For many years, construction filled the employment gap that manufacturing left in the American economy (Sachs). While it can be noted that Americans have benefited from low cost
Fiscal policies of the government can have significant impact on the industry’s performance. Governments generally impose high taxes on airline industry, which is passed on to the customers in the form of higher air fares, alternatively airlines reduce the number of staff is cut down costs. An example is United Kingdom, when the UK government imposed high taxes on the aviation industry, the number of cargo operators reduced sharply in order to reduce costs (My-Efficient-Planet, 2010).
The construction and maintenance of the vast networks of infrastructure needed to support cities, states, and the entire nation typically require the collaborative efforts of both private contractors and public entities to ensure that project design, budget, and schedule are adhered to in an economically efficient manner. For decades, the private and public sectors were capable of working in close conjunction through the public private partnership model, which allowed municipal governments to issue bonds to generate the funding needed for highways, bridges, hydroelectric dams, power plants, and other essential components of modern infrastructure. With the nation still struggling to recover from the devastating effects of a prolonged economic slump known as the "Great Recession," many local governments have experienced severe budget shortfalls that have forced politicians and the public alike to make extremely difficult financial decisions. One option which has become increasingly attractive to city managers across America is the privatization of public assets, a situation which recently occurred in South Carolina when the state awarded the lease to a 16 mile stretch of interstate expressway, known as the Greeneville Southern Connector, to the private investment group Connector 2000 Association. Through a disastrous series of miscalculation and misappropriation, the toll road envisioned by South Carolina's government to become the state's