Quote:
Originally Posted by magellan01
Yeesh. I don't think you've read all my points. I basically agree with everything you wrote. I think the position is nonsensical. The ONLY reason I brought it up is that levdrakon thinks that using an example to illustrate a point is the same as using an example to illustrate no point.
|
You say this, then you reiterate the same point question moments later. If you agree with what I said, you wouldn't continually ask the question expected a concrete answer. See below.
Quote:
Originally Posted by magellan01
So, we agree that private enterprises are more efficient than the federal government.
|
Again, asking this question without realizing you are comparing apples to car wrenches is silly. If a private company was tasked to take on all the roles government does, I don't think it's a given they would be more efficient.
Quote:
Originally Posted by magellan01
But more and more, services are being farmed out to private enterprises with better results an a cost savings.
|
This is just flatly untrue. Even in cases where typical government services are privatized, very few of them result in any cost-savings that are passed on to consumers or the government. Two recent examples of this are prisons and roads. Ask someone from Indiana about how they like paying the tolls on privatized roads. No need to rely on anecdotes either. A recent study from the Bureau of Justice Assistance, linked to
here, states the following:
Quote:
|
The study resulted in some interesting conclusions. For example, it was discovered that, rather than the projected 20-percent savings, the average saving from privatization was only about 1 percent, and most of that was achieved through lower labor costs.
|
More examples
here:
Quote:
|
About 75 percent of Pennsylvania’s school districts now use private firms to bus their students. Yet according to a new study by the Keystone Research Center (KRC), “Contracting out substantially increases state spending on transportation services. We estimate that if all districts switched to the self-supply of transportation services, total spending on student transportation services would fall by $78.3 million dollars…”
|
Another example:
Quote:
In 1994 the Republicans took over the House of Representatives and immediately began to privatize Medicare. Their first step, achieved in 1997 with the support of President Clinton was Medicare+Choice. But the Republicans made a serious tactical mistake. They were so confident in the inherent superiority of the private sector they didn’t ask for a handicap. Private insurers received the same amount as the service cost under Medicare.
The private sector lost the race. Badly. Private insurers began pulling out en masse. In 2000, more than 900,000 patients were dropped from the program.
No one should have been surprised. Private insurers overhead costs (marketing, profits, etc.) “dwarf” (pdf) those of Medicare: Slightly under 17 percent compared to about 5 percent for Medicare. So to become competitive the private sector required at least a 12 percent handicap.
Which private insurers received when Medicare Advantage replaced Medicare+Choice in 2003. The federal government now pays private insurers on average 14 percent more than the same care would cost under traditional Medicare.
|
So no. Even when private companies don't have to shoulder all the costs, they still don't do things cheaper or more efficiently (in general terms) on a regular basis.
That said, please stop trying to compare government "efficiency" to that of the private sector. Whether you are merely asking the question, or accepting it as a given, it's a fundamentally dishonest and nonsensical exercise, and you know that.
Quote:
Originally Posted by etv78
I live in MA and this thread is the 1st I'm hearing of Wawa.
|
Did you travel the country 4 years ago running for president? Have you been to NJ several times in the last few years for political events? Where you employed as a governor, nominally in charge of bringing business to your state? Like I said before, I can imagine some/many people in Mass. have never heard of Wawa, but it was pretty much his job to know these things. Wawa is not some small company. They employ 16k+ people, and have 4.5 billion in revenue. They are about the 65th biggest private company in the US. They are roughly the same size as companies like Bloomberg and Kohler. If the CEO of a company that big calls the governor, the governor picks up the phone. For Romney to seemingly be unaware of the company is strange to say the least.