Sunday, February 04, 2007

Private, Schmivate

Matt Yglesias has good observations on why private contracting of public functions isn't any better than having government do it (and in many cases demonstrably less desirable).

The cash doesn't go to companies that can do a really good job, it just goes to companies that have political clout -- i.e. ones that recycle a share of their profits into campaign contributions. It's essentially the worst of both worlds, since you get the inherent problems of the public sector plus the need for owners to be taking a slice off the top in profit margins. It is, however, a very good deal for politicians interested in union-busting and for politicians interested in raking money in from government contractors. Shockingly, the GOP loves it.

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