Today, nearly all public services -- from schools and hospitals to
prisons, fire departments, and sanitation -- are considered fair
game for privatization. Proponents argue that private firms
responding to competitive market pressures will provide better
service at lower cost. While this assertion has caused much
controversy, the debate has consisted mainly of impassioned
defenses of entrenched positions on all sides.
You Don't Always Get What You Pay For changes the contours of
this debate. Elliott D. Sclar offers a balanced look at the
pitfalls and promises of public sector privatization in the United
States. Describing the underlying economic dynamics of how public
agencies and private organizations actually work together, he
provides a rigorous analysis of the assumptions behind the case for
privatization.
The competitive-market model may seem appealing, but Sclar warns
that it does not address the complex reality of contracting for
government services. Using specific examples such as mail service
and urban transportation, he shows that, in an ironic twist,
privatization does not shrink government -- the broader goal of
many of its own champions. He also demonstrates that there is more
to consider in providing these services than trying to achieve
efficiency; there are issues such as equity and access that cannot
be ignored.
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