Privatization of Government Essay

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Privatization of Government We have all heard politicians talk about the benefits of privatizing government and how it can save money. In actuality, the savings are not always there. Obscured fees for items such as contract monitoring and sub-par administration can end up costing more than it would to perform the same tasks in-house. The Government Finance Officers Association estimates that hidden and indirect fees add up to 25% of the actual contract price. The Government of Accountability office found that the way the consultants were conducting the financial reports, made cost savings appear greater than they really were. In 2007, a survey by the International City/County Management Association, 52% of governments ended up bringing services back because the savings did not add up. In Wisconsin, the Legislative Audit Bureau revealed that the Department of Transportation for the state squandered well over $ 1 million dollars by outsourcing to private contractors. The report also revealed that 60% of the outsourced positions, had they been done in-house, would have not only been cost effective but also saved the state about $1.2 million. Another myth is that private corporations tend to do a better job than the local sector. However, studies show that many private contractors fail to deliver. Many companies even leave communities without the services promised or any way to recover any assets. Another downside to this with any private corporation, their main goal is profit, by any means necessary. In 2010, Gary, Indiana cancelled a decade long contract with its main water company, United Way. In mid-2008, the state found that the company violated the discharge limits 84 times in 2 years. Inspectors also found over 20 pieces of broken equipment as well as incomplete monitoring reports. When the state cancelled their contract with United Water, they reduce their

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