Advantages And Disadvantages Of Privatization

Q: Privatization of daycare services is a hot topic on the agenda of Canada and some other developed countries by claiming that privatization will bring both qualitative and the quantitive efficiency to the market and thus help countries to raise higher generations. What would be the effects of this turn to the women and the ‘motherhood’ concept?

It has been 20 years since the privatisation of British Rail occurred in Great Britain. This is when the government’s ownership and infrastructure of the railway where passed on to the private sector in order for them to try make it a better efficient market. The government have multiple regulations in order to keep this industry from falling back in to a monopoly. There has been many benefits and problems that have occurred to both the producer and consumer while the government have tried to intervene in order control the pricing of rail tickets.

The de-privatization is a policy influenced by political interests. The politicians based their policies on what are the basic and essential needs of the population, which are public services, in particular the health system. They know that these agencies are sensitive issues for the people and use it as a bell policy for future elections. The privatize these agencies brings as a consequence the loss of control of the government. On the other hand, they used the public services as a method to keep the interests of the public and place those services in the direct control of the government and directly accountable to the elected representatives. Despite the fact that the de-privatization brings as a consequence the loss of dividends by privatized companies,

Natural monopolies are cases in which production costs, infrastructure, and demand structure lead to a single monopolizing firm producing the good at lower cost than any other arrangement. Under such situations, firms will tend to over-charge and under-supply, causing a reduction in social surplus and an inefficient distribution of goods. A lack of competition is a fundamental violation of the idealized market assumptions. Little or no competition leads to inefficiencies of production and operation (Weimer and Vining p. 102). Furthermore, natural monopolies give an unfair and non-competitive advantage to firms that have entered the industry first. In cases of natural monopolies, government must typically regulate private industry in an attempt to maximize surplus, or, alternatively, government may provide the good or service publicly.

History has shown that societies that promote vigorous competition among private companies have lower prices, better products, and greater consumer choice.

It creates equal and fair pricing. The economy would be tyrannical without competition, that is why they made a policy to destroy any monopolies from forming because if they were able to form and take over that area of the market and raise prices outrageously to whatever they feel would make them as much profit as possible while not raising too many suspicions. However if there is a monopoly they would be able to raise the prices however high they want because there is no other companies selling that same product at a cheaper price. Competition creates fair prices because take for example two gas stations right across the street from each other. They are both getting solid business until one decides to lower the price of his gas ten cents. The other gas station notices twice as many cars at the other one and decides to lower his fifteen cents. This just keeps going on until they have to stay in a certain range so they can still make a profit, but this is how competition stabilizes the economy. Competition also makes companies come out with new and innovative ideas to grab that portion of the economy. In other economy's where there is communism they don’t create products to the best of their ability or try to create new things as they are all getting paid the same so there is no incentive for employers or employees to work harder. Competition is what makes the U.S come out with the latest technology, latest cars, phones, and anything you can think of. An example of a big time monopoly was John D Rockefeller, he was able to control everything, prices, products, elections it just creates solo dominance in the market which is not good. We need different products in the economy and different versions of products for every different person and every different cause for wanting that product. The U.S economy is number second in the world now which is why we are so great and have so many varieties of products. This

In some cases where products produced by the government are subsidized then privatization leads to an increase in prices, when the government owns these firms then the consumers will experience a reduction in the price of goods and services produced by these firms and therefore gain.

Privatizing the United States air traffic control operations may move closer to becoming a reality in 2017 – something most airline companies and other industry leaders have been pushing for a long time. Proponents of shifting away from government control introduced a bill last year that the incoming president has expressed a willingness to carefully consider. Rep. Bill Shuster (R), who helped draft the legislation, sees the long overdue shift to satellite-based air traffic management as the solution to lower costs for operators, while making air traffic safer and more efficient for all stakeholders. Whether global air travel is privately run or government controlled, call center voice recording activities will still be necessary to ensure control tower staff are fully trained and conversations are documented for

Monopolies can also create inflation. Inflation is not good for an economy because prices of vital items such as milk, bread, and clothing will increase substantially. Since monopolies can set whatever price they want, this will lead to a kind of inflation known as cost-pull inflation. This kind of inflation is when wages go up and sellers’ costs are passed on to buyers which results in consumers getting less of the product. Government regulations is one of the ways to stop inflation because this forces monopolies to not charge high prices to consumers which would prohibit low

This has caused a decrease in park visitors over the past few years, and profits for national and state parks have decreased along with it. This provides a rational argument for Republicans in their reasoning for selling these parks. If the parks are losing profit then it is due to the government's incapability to manage them, and it would be costly for us to continue maintaining them on a federal level. Now, if privatizing the parks was a viable solution to this issue, then any alternative agendas may be considered irrelevant. As if it truly were better for the parks to have them managed by industries and corporations, then this could be something supported by both sides. However this is not the case. Because of the inherent nature of parks and profit-for-sustainability (ie non-profit), profit driven privatization goes directly against their mechanism. As Priest mentioned earlier, privatization traditionally promotes increases in profits through the introduction of

In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.

According to Robert B. Denhardt, Public Administration an Action Orientation, privatization "is the use of non governmental agencies to provide goods or services previously provided by government." (P.95). Privatization comes in various degrees, from the outright selling or transfer of government ownership of assets (for example public utilities), to, as is more common in the United States - the contracting of goods or services to private firms.

One current environment-development problem that could be framed as a Common Pool Resource dilemma is that of public health. Public health might not seem to meet the criteria of a common pool resource and thusly not be a problem, but in reality it is. While it’s true that anyone can be healthy, and one person being healthy doesn’t take away from the health of others, the point of contention in this case revolves around illness and its spread. This arises in the form of drug-resistant infections. In an ideal world, infections are treated properly and only the correct medications are used. However, in the real world, illnesses are improperly treated resulting in the creation of drug-resistant infections. The subsequent spread of these infections

There are two kinds of privatization, private provision of service with a “public” character and the process of returning to the private sector property’s or functions previously owned or performed by government. (Shafritz/Russell/Borick pg. 106-107). The private sector is guided by the motive of money and in the United States, where there is more of a free economy, the private sector is wider in comparison to countries like China. Some argue certain public goods and services should remain primarily in the hands of government. An example of this, is law enforcement, basic health care, and basic education. In comparison, some feel that government should steer rather than row.

Monopoly by the government can be beneficially introduced procedure in industries. The government can/has created knowledge in technology industries. The Humvee is a good example (as you read below) of the government monopolize the market. Since its release to the military in the 1980’s it took about ten years before being retail to the public before this time the government contract with Am General stated that they could not sale to the public. Monopolize by government subsidized AM General for the Humvee and keeping it to a military vehicle.