As the direction of the country changes everyone is yelling for an “efficient and effective government”. Many people, such as voters and elected officials equate “efficient and effective government” to cost cutting measures to save tax dollars. Ideas that are squandering are things such as privatizing the United States Postal Service, trash pickup, recreational programs, pothole repair, fire services, and etc. The real question is “What are the pros and cons of privatizing these services?” Well the ultimate pro can be that it may save tax dollars, but after explaining the cons I will let you decide your position.
Con’s of Privatization of Government Services:
1. Less accountability for government. They can blame the third party contractor for errors in services instead of taking responsibility to correct the error.
2. Many subcontractors misclassify their employees as 1099 contractors. This helps them to evade paying unemployment benefits, social security taxes, workman’s compensation benefits, etc.
• If a 1099 contractor (misclassified employee) is hurt on the job for the subcontractor, he will then receive some type of government subsidy because he is unable to work.
• If a 1099 contractor (misclassified employee) has completed the job and the subcontractor has no more work for the 1099 contractor (misclassified employee) then he ultimately becomes unemployed. Due to the fact that his employer paid no unemployed benefits into the program, he is now forced to receive some type of government subsidy to supplement his income.
3. We are assured that government workers make a good living wage, benefits, and retirement. With privatization it’s a race to the bottom with wages and many may not have benefits and retirement. This ultimately ensures that the taxpayers are paying double, because they will be receiving minimal funds for their services and collecting a government subsidy though our tax dollars.
4. When government services are privatized, our friends, family, and neighbors who work in the public sector lose their jobs which stagnates the economy, deteriorates neighborhoods, and creates high unemployment.
5. Good middle class jobs that prior generations endured are damaged for the youth and future generations to come because of “Race to the Bottom Tactics”.
So clearly, I stand against the privatization of government services because a dollar that is saved today is going to be costly in the future. Our country was built off the power of the middleclass and its ability to have the funds to spend in order to stimulate the economy. The adverse effects of privatization are another way for corporate America to play Russian roulette with tax payers’ money. So, I ask when you hear legislators proposing ways to privatize government, keep in mind the real cost of “effective and efficient government” and weigh all the pros and cons before deciding a position.
