Privatization of government services has plagued the 21st century(opens in new tab) and it rarely goes well.
A new mini-documentary examines the dramatic and costly impacts of government privatization in Ontario – a large Canadian province that borders several US states. Not only has privatization of services like water treatment and infrastructure development dramatically raised costs for taxpayers, it’s also led to disastrous and deadly breakdowns in public safety(opens in new tab).
In the US, ultra-right groups like the Koch Brothers are pushing to privatize everything from K12 education to Social Security. Just like in Canada, privatization costs US taxpayers millions(opens in new tab), worsens delivery of vital services and drives down workplace wages and benefits across the economy(opens in new tab).
A growing body of evidence and industry wage data suggest an alarming trend: outsourcing public services sets off a downward spiral in which reduced worker wages and benefits can hurt the local economy and overall stability of middle and working class communities. By paying family-supporting wages and providing important benefits such as health insurance and sick leave, governments historically created intentional “ladders of opportunity” to allow workers and their families to reach the middle class.
Our partners in the labor and progressive movement are pushing back to keep public services where they belong: in the public sector.