The Mudcat Café TM
Thread #113353   Message #2408608
Posted By: Little Hawk
08-Aug-08 - 02:24 PM
Thread Name: BS: the big lie behind privatization
Subject: BS: the big lie behind privatization
Here's an interesting little side note on how private industry works...

Our hydro industry in Ontario used to be a public company. Hydro was sold to the public at cost. Thus the public's monthly hydro payments were sufficient to maintain the system and employ its personnel.

A series of neo-conservative policymakers in the Ontario government decided that they would do us all "a favour" by deregulating and privatizing the hydro industry. This would supposedly reduce the cost of hydro and increase efficiency... ha! ha! ha!

Well, it is now 2 or 3 years later, and guess what? The price of hydro has DOUBLED in that time! Yes. Naturally...they have to make a profit now, don't they? And isn't it normal for a profit-making business to sell its product at around twice the cost of production? And efficiency is now indistiguishable from what it was before. And our overall taxes have not been reduced.

My, my. Does anyone see what all this privatization of former public services is really about? I do. It's about further enriching a business elite...the same business elite which funds the campaigns of the major political parties. It's about gouging the helpless public to pad the pockets of the business elite.

It's the BIG LIE when they tell the public that privatization of their social services will reduce costs and increase efficiency. The truth is, it will do the exact opposite in both cases. And your overall taxes will not go down either...your tax dollars will just be shifted somewhere else...maybe to finance a warmaking operation of some kind. Maybe to build some more prisons. Be sure of this...they will find a way to keep spending your money, but it won't be on your behalf.