The Merits of Privatization Research Paper Example | Topics and Well Written Essays - 500 words

The Merits of Privatization - Research account Exampletes, transcontinental railroad constructed by public and orphic partnerships during the nineteenth century is one of the early examples of privatization in the US. The transcontinental public private partnership is always cited as an example by the raft who support privatization. Privatization not only brings efficiency but it also helps in curtailing cost and visits bureaucracy. (Loulakis, 2003)The recent financial downturn and government bailouts fool severely affected the American economy. With the government deficits and costs of borrowing change magnitude day by day, many leading economists have advocated privatization of government functions which would bring budgetary discipline and would reduce governments financial burden.Though the consumers are greatly benefited by the reduction in the costs of goods and services due to privatization, the only point which may negatively affect the citizens is accountability. Cit izens do not have any restrainer over private companies and cannot punish them, like they can punish the government by not voting for them in state or central elections.Another point of concern with privatization is that private firms operate with only one motive that is profitability, which is secondary in government owned and operated firms. Though, privatization has greatly ameliorate product quality and cost, there are genuine services which should not be privatized. Sectors like defense, fairness enforcement, education and basic healthcare should always be under soil control.The future of the country depends a lot on the above mentioned sectors and therefore, the motive of cost cutting, profitability and competition should not come into consideration. However, certain functions like sourcing of certain products can be outsourced.Another reason why these sectors should be under State control is because in case of any adverse events the government must have the capacity and the control to handle the situation quickly and