President Bush's announcement last week of his intention to privatize up to
half the federal workforce came with the usual confident talk that it will reduce
government costs and improve services.
Market ideologues may believe that, but there is no reason citizens should
be so gullible. Instead, we might ask critical questions about the likely consequences
of large-scale privatization and why the Bush gang is so keen on it.
Research suggests that where there is real market competition for relatively
simple goods and services, governments can save money and ensure quality through
privatization. Contracting out tasks such as office cleaning may save taxpayers
money in some cases (though often at the cost of lower wages and reduced benefits
for workers).
But that's not the majority of cases. Often short-term savings evaporate quickly
once competitors drop out. Contractors who underbid to win a contract are free
to raise rates later, often leaving governments with little choice but to accept.
For complex contracts, oversight costs are high, or inadequate oversight leads
to corruption. State and local experience suggests that in services such as vehicle
and highway maintenance, privatization may end up costing taxpayers more.
So, the cautious (dare we say "conservative"?) position would be that when
the complexity of the job or the nature of the market argues against privatization,
we should go forward only after careful study. But the Bush proposal suggests
just the opposite: an assumption in favor of privatizing at breakneck speed, which
means careful study will be overridden by ideology and good-old-boy politicking.
If research and experience on privatization don't support Bush's enthusiasm,
why is he pressing for such wholesale change?
One potentially relevant fact: Last year 37.4 percent of government workers
were unionized, compared with 9 percent of private-sector employees. Since organized
labor consistently supports the Democratic Party, it's plausible that Bush simply
wants to reduce the number of workers in a more unionized sector.
Even if short-term political payback is part of it, there may be a more fundamental
goal, in not only contracting out union jobs but also the push to privatize programs
such as Social Security: Undercut any organization that might increase the political
power of working people. Eliminate any program that might lead people to work
for common interests. Destroy any ideas people might have about solidarity.
Even though most unions in the United States years ago accepted a role subordinate
to big business, they are a target of the right wing. Why? Because they remain
a latent threat. Even if not engaged in radical political activity today, unions
are a place where ordinary people can come together politically and wield power,
and hence they must be eliminated.
Social Security is another obvious target. While hardly a complete solution
to poverty among the elderly, it's a successful program. That's why right-wing
pundits and politicians have worked so hard to scare the public into believing
Social Security is on the brink of collapse. The immediate goal is to allow Wall
Street to get its hands on more money through private retirement funds, but the
long-term goal is to privatize not just these programs but people's minds, to
try to eliminate any sense that we have common bonds and obligations to each other.
In Bush's 2003 budget, this "competitive sourcing initiative" to eliminate
federal government jobs is explained as part of the pursuit of "a market-based
government unafraid of competition, innovation, and choice."
I am not afraid of competition, innovation or choice. But I am deathly afraid
of a market-based government, in which the values of corporate capitalism - the
pursuit of profit to the exclusion of all other considerations - will overwhelm
the values of democracy - equality and liberty.
Robert Jensen an associate professor of journalism at the University of
Texas at Austin, is the author of Writing Dissent: Taking Radical Ideas from the
Margins to the Mainstream and a member of the Nowar Collective http://www.nowarcollective.com/.
He can be reached at rjensen@uts.cc.utexas.edu.
For more of his writing, go to http://uts.cc.utexas.edu/%7Erjensen/freelance/freelance.htm.
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