Republicans really like talking about privatization of government services.
The worst example of this was when Mitch Daniels, Indiana’s Governor, faced a huge deficit. Rather than raise taxes or cut services he sold the Indiana Tollroad (80 90) to a private operator. Indiana took an item which caused little problem and operated smoothly-(the state took 100% of tolls for maintenance and operating expense and raised tolls when those costs rose), and turned it into a private monopoly. Tolls went from a pay as you go system to tolls which have to pay back the purchaser’s initial purchase price and give the purchaser a profit on his/her investment. The state gave itself the very difficult task of policing a monopoly owner to make sure it is not skimping on maintenance in order to increase profit.
Privatization is not the correct term-it is simply rewarding monopolies to politically connected companies. I am a firm believer that competition in a free enterprise system is more efficient than the government, but what is called privatization in almost every case, is just establishing a private monopoly which is extremely hard to control.
I watched something very similar to privatization happen at Chrysler. The auto industry went from buying individual parts which the auto companies had tight control of, to large systems for which they could not control their costs. In essence, they outsourced Henry Ford’s assembly line, the very thing that made the industry so successful. This eventually bankrupted the industry, and the industry still struggles to bring outsourced assemblies back in-house.
I will only vote for privatization opportunities where the State of Michigan has exactly the same degree of control over an outside supplier as it has when it does the work itself—that is very, very few items.