SimpleDon
Veteran Member
This is an odd thread. I have heard of some prisons in the south that have been privatized. I don't know if they are working on not. I suspect, probably not. But we can't debate an issue unless there are some examples that we can debate pro or con. It seems to me that if privatization were a growing problem that we'd have a lot more examples.
I wouldn't exactly call that privatized. I've yet to see one of these "private" prisons that has any private clients. Every single inmate in a "private" prison is sent there by the government. The "private" prison wouldn't exist without its only customer, the government. It is contracted, not privatized.
I've yet to see a private prison. If anyone tried it, however, you'd see the person trying it being sent to a "private" prison for kidnapping, holding people against their will, enslavement, etc.
There are prisons in the US that are built with private capital and run by private corporations. These prisons are run for profit. It is reasonable to call them private, for profit prisons even though it is the government jurisprudence system that sends the prisoners there.
Like most government to private, for profit schemes that save money over the government option they do it by paying lower wages with fewer benefits than government employees receive. Most of the savings from lower wages is converted into profits with just enough applied to the fees that the government pays to save money.
The most obvious example of privatization and the conversion to for profit entities run amuck is our healthcare system. Forty years ago healthcare costs in the US were on par with the rest of the developed world. Then private, for profit corporations started to buy up the hospitals that had previously been non-profit owned by charities or government. After forty years we now pay two to even three times more than the other developed countries. (Referring to medical costs per capita as a percentage of GDP)
Medicare Advantage is another example, when it was passed it included a supposed temporary additional payment of 25% above what it cost the government to be administer the Medicare system. Over time and due to the miracle of competition this extra fee would disappear as the insurance companies competed with one another. It should come as no surprise that the fee has never gone away, although it has been reduced among much protest by the health care insurance companies that they can't do the work for the lower fee accompanied by a public relations campaign that the government is cutting Medicare. This is the source of the claim that ObamaCare was reducing Medicare by 300 million dollars a year. It was, in payments to the private insurance companies, but it wasn't a cut in benefits like the insurance companies hoped that the general public would believe.
Yes, the Medicare Advantage programs include more benefits than standard, government run Medicare. But the insurance companies have to include these extra benefits or no one will buy a Medicare Advantage program, because no Medicare Advantage program is as well accepted as standard Medicare. They pay doctors less than standard Medicare. Government run Medicare pays much faster with less hassle than with any private company.