The Advantage of Privatization

Discussion board reply whether you agree or not with the submission bellow and discuss the reasons why.


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The advantage of privatization is that there is increased efficiency of certain services such as schools, jails, state employment agencies, and welfare agencies. These services can experience increased efficiency because shareholders will want to ensure management is performing, usually through audit committees. Privatization also creates jobs as they employ more professionals based on skills. Private companies begin to compete in terms of quality and price. With privatization, companies have no political interference. Lastly, the sale of agencies generates large amounts of income for the government and these agencies begin to pay corporate tax to the government. The disadvantages of privatization are that these companies prioritize making profits while the welfare of the citizenry becomes a secondary priority or is not addressed. In the case of military aircraft maintenance, it might be too risky to privatize because the owners of these companies might belong or be linked to enemy nations. Most agencies become monopolies upon privatization as they are sold to one major company. Ultimately, there should be a fair mix of private and public services.

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