Martin Rundkvist1d ago

Hey private enterprise enthusiasts. You believe that the public sector can save money by handing over utilities to companies, which are inherently more efficient.

Here's why this doesn't work.

You have to pay someone to monitor the private companies. Because they have no incentive to deliver what they promised. They always cut corners in the name of profit. And that monitoring eats the savings you hoped for. While you have no control over your utilities.

#capitalism

Show threadMartin Rundkvist

If you think I'm exaggerating, think about it.

What is the incentive for a private company to fulfil every detail of the contract?

Only your monitoring. If nobody can tell whether they have done what you paid them to do, then it is economically rational not to do it. Avoiding that expense goes straight to the company's annual profit.

#capitalism

Jun 25 at 7:54amWeb
Show thread2xfo8h ago
@mrundkvist
Where did the maintenance money go? Shareholders. Will they pay for maintenance? Of course not. But taxpayers will eventually be forced to pay for the utility operator's negligence
Show threadSeiðr2h ago
@mrundkvist The history of the last 40 years of the UK is material evidence of it: from their "very efficient" trains to their "clean and pure" rivers with raw sewage from the water utilities. It was alwasy a con to enrich some pals.