Privatization of Government (Part II)

In the last article, we talked about and addressed the issue of “deconstruction of the state” reducing and streamlining its administrative bureaucracy, reducing the “red tape” and reducing its role in the daily lives of all Americans. So far so good.

Deconstruction is one thing, privatization of government services is totally another thing. And if we are to take “deconstruction” to its logical conclusion then “privatization” is the answer.

Yes, and true, governments and administration resort to “privatization” to show they are doing something for the taxpayers, reducing the budget and taken different departments or agencies off the books as a favor to the taxpayer. No, it is not a favor to the taxpayers.

On the contrary, all “privatization” programs have proven a “windfall” for the private sector, to Wall Street, to hedge fund managers who through investing in these companies that provide services on behalf of government make a ton of money. The taxpayers end up paying double and triple for the services government used to provide. Of course, taxpayers do not feel it as a tax, but they do pay it directly from the disposable little income they have.

By chance, while preparing for this article, I watched a very interesting program on NPR “Frontline” titled “Poverty Politics and Profit“, an investigative report that “examines two of the government’s key affordable rental housing Programs-Section 8 rental assistance, and the low-income housing tax credit”.

The program is not only about segregation that lasted for 80 years, but the windfall for the developers, the banks, and the brokers, all benefiting from a very expensive program for the government, with minor benefits for the targeted beneficiaries.

Think of it this way. The government decides to privatize a department or agency that provide Medicare and Medicaid or Social Security or even “motor vehicle offices”. First, the CEO will be making a million or two in place of federal bureaucrats whose salary might reach $170,000 at most. Then add to that the return on investment for hedge funds and the banks. When you add up all those who will benefit from such “privatization”, the taxpayers end up paying three or four times the original cost in out-of-pocket costs.

I, like you, do think that our government became too large, too bureaucratic and too difficult to navigate all the rules and regulations. But then, think of the same government agency becoming a private corporation, becoming self-serving and answerable only to shareholders, and who will protect the rights of citizens? And how much we will pay?

As we have seen from the days of President Reagan, who began the process of “privatization” and “deregulation” process, costs to shareholders were over a trillion in losses (Pan Am, TWA) and over $400 billion to the taxpayers in the Savings and Loan Association fiasco and the story continues.

Let us hope that President Trump will now give serious attention to the needs to “deregulate” the “regulations” but not privatize key government services such as Social Security, the Veterans Administration, Housing and Urban Development, Department of Education but make these key agencies more responsive to the needs of people.

Privatizing public schools is the last thing America needs. The majority of the taxpayers “White” middle class and blue collar workers that voted for President Trump are the key beneficiaries of public schools and of course Blacks and Latino.

The school voucher system, while being marketed as cost-effective, in reality is creating a windfall for investors, who are reaping billions off this system, while not producing the quality education governments and parents are paying for. In fact, the “voucher system” is for the benefit of those communities where education is driven by “political or religious” ideology, not by science and math and language. It is one way to deprive those who voted for Mr. Trump the right to demand improvement and investment in our public schools, responsive to local school board not to Wall Street.

It is so ironic that in a country that is losing its industrial base, losing its edge in vocational and technical schools, with wide disparity between schools in affluent Zip codes and poor Zip codes, ‘education” is not a constitutional right, leaving it to counties and school districts to fund public schools through property taxes, resulting in a wide gap between public schools in Hollywood and those in South Side, Chicago.

Most Americans, you, like me, attended public schools ( same with my children) where we got a decent education without having to cough up thousands of dollars for private schools, which are in reality “For Profit” schools generating tens of millions of dollars to their shareholders at the expense of taxpayers.

Yes, they tell you it’s “voucher” and they tell you “school choices”, when in fact it is taking tax dollars out of public schools and shifting it to owners of “charter schools”. There is no other way to explain it. Tax dollars being shifted to investors in “charter schools” rather than keeping the money in public schools, and keeping public schools affordable with needed investment and improvements. Of course, let us also not dismiss the “unspoken” reasons of killing public schools because they now serve the poor Whites and the Blacks.

Here in rich Fairfax Country, we have some of the best schools in the country with top performance and all the schools in the country are of the same standards and the standards is not set based on the ZIP code. Will this change, most likely.

It is a big mistake and it is a crime against “White” Middle and Working Class taxpayers to abandon public education, when in fact, we should be investing more and more in public education to make sure that we have a well-qualified labor force for the future, providing our children with the tools they need for the future.

It is not so surprising that the biggest investors in ‘charter schools” are hedge fund managers and real estate developers. The same group of people who are ripping the government off in public housing programs.

These wealthy investors get a 39% tax credit and more than double their return on investments with “seven years”. As explained by Juan Gonzalez ” Big Banks Making a Bundle on New Construction as Schools Bear the Costs ” on Democracy Now “it is a tax credit on money they are lending, so they’re collecting interests on the loans as well as getting the 39 percent tax credit”, with real estate investors getting rent exceeding 20% of the annual budget some even reaching 43% of the school budget. What is left for real education?

No, we do not have to imagine that the CEO of United Health makes $60 million annually (he does make $60 million annually) only for the company to manage the insurance paperwork. Imagine if the government goes ahead and privatize the Veterans Administration and gives it to companies that robbed the government out of billions of dollars in fraudulent charges.

I am sure you remember Rock Scott, the Florida governor whose company HCA defrauded the government out of billions of dollars resulting in 14 criminal convictions (no one went to jail), and HCA forfeited $1.7 billion in fines fraudulent Medicare overpayments. Should we be really trusting the Wall Street and the private sector to manage the Veterans Administration and its hospitals? Just think what the salary and benefits of the CEO will be. Perhaps $200 million annually!

Over the last 40 years, we have seen the ugly face of Wall Street and the fraudulent face of business run by crooks and shysters.

Yes, we do need to “deregulate” the many “regulations” that are a big burden on business delivering services and products to consumers but we also need to keep the quality, service, and products delivered to consumers and taxpayers at the most cost efficient price.

If we are to “deregulate” government, let us start with “deregulating” and privatizing the self-serving Congress that costs too much to operate, a Congress loyal and subservient to business and lobbies and indifference to the needs of citizens and taxpayers. The main question is do we need a Congress of “professional politicians”, or go back to citizens’ legislatures, as envisioned in the early days of the nation? Let us formalize Congress as a publicly traded company, which it is, and dispense with voting for members of Congress. Your feedback is welcomed.


Part I

Will Trump Deconstruct Administrative-Bureaucratic State? (Part I)


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12 Responses to "Privatization of Government (Part II)"

  1. M71  May 22, 2017 at 4:35 pm

    The US government is currently made up of around 250,000 private corporations – example the US Federal Government is a private for profit corporation. This is no different in other western countries as I understand it. “The Government” – what is it in reality? Clint Richardson explains what the US government really does and I believe it’s the same case for other western governments – he also explains how to look up the figures for the holy grail – the Federal Reserve.…/cafr-school…/

  2. DrKenTennant  May 16, 2017 at 11:34 am


  3. David Odell  May 16, 2017 at 5:29 am

    Privatizing Congress might be an idea worth exploring. Performance based salaries would certainly have an effect, and much of what is considered “sensitive information” would be freed up. I would privatize education and make it publicly available, but not compulsory. The case against compulsory ed is overwhelming and nearly all major tech advances in the last 2 centuries have been from non-HS grads.
    There is no question, the population has been dumbed down. A national referendum to reduce the military budget by 80% and place a permanent cap on it, would pass quite easily. But here in the land of the free, we do not utilize referendums.

  4. roger  May 15, 2017 at 9:14 pm

    People enjoy being turned into misery by the same Jews that they side with and worship as “chosen” ones. Any recent poll shows that almost 60% of Americans support Israel, believe holocaust and 9/11 official report without realizing that all that’s pauperizing them directly stems from Jewish bankers, hedge funds Jewish holders, and Wall St. Jewish gamblers, and all its done to monopolize the economy into full Jewish control like utilities, health and education and social security The excuse of lacking Budget to sustain services its the first step to justify privatizing then, once in Jewish hands bills become unbearable to most people. without water, gas or electricity, cannot have education, work,health or retirement. and become candidate for population reduction and slavery for remaining ones thence, how would anyone call “The Protocols of the Learned of Zion” conspiracy theory?

    • roger  May 15, 2017 at 9:48 pm

      All sponsored economic theories proposing stringent budgetary provisions, deficit redux,and eliminating public Jobs are pointing to privatization first, deregulation second and monopoly price freedom third. All theories becoming an unquestioned dogma yet, when WWII time came there was no Budget limitation whatsoever as it is today on the Military Budget in the procurement of NWO. So, economic theories are just part and parcel of the same abominable designs.

    • Amelius  May 16, 2017 at 12:33 pm

      There are many who suggest that “The Protocols of the Learned elders of Zion” is a forgery. This is true, but only in the sense that the Protocols were republished without the consent of the original author. This doesn’t make the information contained in the document any less true. In fact, anyone who reads the Protocols and compares them to the behind the scenes reality of our situation today, understands that the protocols are not merely a conspiracy theory, but are a blueprint for hijacking control of the world. Of course, the Zionist Ashkenazi imposter Semites are going to employ their weaponized buzz terms like “anti-Semite”, to describe anyone who mentions the Protocols, but this is just a pathetic attempt to protect their own a$$es.

  5. Detlef Reimers  May 15, 2017 at 3:46 pm

    The Ruhr-Gas AG owns and manages the whole water system in and nearby London. This was shurely the worst deal, the british government could make – and I say this as a German fellow. It was devastating, the costs exploded instantly, the service reduced to nearly nothing also instantly. Three very severe situations aros, when the toillette water was going to contaminate the drinking water, caused by a totally rotten and never renewed water canal system. The Ruhr-Gas Ag made great profits.
    Many German towns have already cancelled this devastating and absolutely unfair and systemically corrupt PPT deals (Berlin and others). Some will survive longer, but all people in all countries where they made such agreements, had exactly the same experiences: it’s the worst thing that can ever hapen.

  6. RichardD  May 15, 2017 at 2:34 pm

    The North Koreans and others have outlawed taxation of the citizenry as a violation of human and civil rights, and pay the government’s bills with income from state enterprise. I completely agree. Then who pays for government services becomes a non issue. If I become a government owner operator that’s what I’m planning to do. I think that the citizens would be a lot happier with that. Provided that they get good value for their money, monopolies are avoided, and the system is fair.

    I’d also replace most legislation outside of security and economics with referendum rather than legislature approval or rejection. And rule by decree on an as needed basis. Which I’d try to minimize so that the citizenry was mostly self governing. And I wouldn’t be accused of being a dictator.

    Some people say that democracy is god’s will. My view is that good government is god’s will and that both democratic and non democratic governments are capable of providing it if they’re run properly. Political system intolerance and hegemony drives are part of the security problem on this planet.

    Governments should be judged by how good of a job that they do. Not by the political system that they use.

    • Eduardo  May 15, 2017 at 3:52 pm

      Are there are any “good governments” in today’s world?
      Governments should be judged and trialled by how corrupted they are, who fills their pockets and who blackmails them. Greed and the hunger for power is a disease of the human mind and does not discriminate dear RichardD but I have to agree that both democratic and non democratic governments are capable of providing a good job to their citizenry if they can overcome their failures in honesty and truth and replace their intellect with wisdom.

    • RichardD  May 15, 2017 at 8:08 pm

      Corruption and incompetence is a problem with all governments at the nation state level, some deal with it better than others. I’d be the first to agree that more spiritual maturity would be helpful.

      The huge population spike from the industrial age has been a real challenge and natural resource depletion and sustainability are serious concerns that have to be addressed for progress to continue.

      People like myself who’ve been offered off planet technology beyond what’s in sequestered terrestrial projects view it as an opportunity solve sustainability and environmental and ecological reclamation issues. So that we can have a future on a poverty and pollution free planet.

      Normalizing relations with ET civilizations that have it and getting the import export licensing approved by them is something that I’m working on. I think that we need to get the wars stopped and demonstrate that we’ll use advanced technology responsibly without detriment to ourselves or others.

      Part of this is close encounter friend or foe assessment. I’ve been through several, some have gone well some haven’t. Some of the non human creatures seem pretty decent to me. So I try not to be prejudiced.

  7. Trakkath  May 15, 2017 at 5:47 am

    govern mente means mindkontrol and was already long before privatised by organised religion and serveral private institutions like Tavistock, DARPA etc. They all are NGOs and even if you thought that this structure of society in former times with kings and queens, aristocrats were in the form of business and NGOs. Even slavery is just business. And in most cases the Roman Emperor was the holder of this business as is today by Canonic Law. So res publica is also privatly owned by owners of the property.

  8. paul becke  May 15, 2017 at 3:01 am

    The homeless already live in a post-holocaust, Mad Max world. Satan knows no shame.

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