November 13, 1992 • Volume 2, Issue 42
Should the private sector provide more private services?
By Richard L. Worsnop


All across the country, revenue-pinched governments are turning to private firms as a way of saving money without impairing the delivery of services like trash collection and street paving. Indeed, it is an article of faith among conservatives - and a growing number of liberals - that nearly all government programs operate more efficiently under private management. Some critics caution, however, that privatization is no panacea. They contend that contracting out public services to private interests often ends up costing taxpayers more, not less. In addition, labor leaders say any cost savings from privatization come from reduced wages and benefits for workers. Still, privatization is likely to remain a popular option for government officials as long as resistance to tax increases stays high.

ISSUE TRACKER for Related Reports
Dec. 08, 2017  Privatizing Government Services
Aug. 09, 1996  Privatizing Government Services
Nov. 13, 1992  Privatization
Oct. 07, 1988  Privatization: Third World Moves Slowly
Jul. 26, 1985  Privatizing Public Services
Privatization of Government Functions
Unions and Labor-Management Relations