What follows is a brief summary of Paul Buchheit’s article on how privatization is hurting people. The complete article is linked below.

Health Care

Our private health care system is by far the most expensive system in the developed world. Forty-two percent of sick Americansskipped doctor’s visits and/or medication purchases in 2011 because of excessive costs. The  price of common surgeries is anywhere from three to ten times higher in the U.S. than in Great Britain, Canada, France, or Germany. Some of the  documented tales: a $15,000 charge for lab tests for which a Medicare patient would have paid a few hundred dollars; an $8,000 special stress test for which Medicare would have paid $554; and a $60,000  gall bladder operation, which was covered for $2,000 under a private policy…as a nation we have a  shorter life expectancy than almost all other  developed countries, Americans covered by Medicare  INCREASED their life expectancy by 3.5 years from the 1960s to the turn of the century.


A 2009 analysis of water and sewer utilities by Food and Water Watch found that private companies charge up to 80 percent more for water and 100 percent more for sewer services.

… Nestle buys water for about 1/100 of a penny per gallon, and sells it back for ten dollars. Their bottled water is  not much different from tap water.

Worse yet, corporations profit from the very water they pollute.  Dioxin-dumping Dow Chemicals is  investing in water purification. Monsanto has been accused of privatizing its own pollution sites in order to sell filtered water back to the public.


With privatization comes automatic rate increases.  Chicago surrendered its parking meters for 75 years and almost immediately faced a doubling of parking rates. California’s  experiments with roadway privatization resulted in cost overruns, public outrage, and a bankruptcy; equally disastrous was the state’s foray into  electric power privatization. In Pennsylvania, an analysis of school busing by the  Keystone Research Center concluded that “Contracting out substantially increases state spending on transportation services.”


Goldman Sachs designed mortgage packages  to lose money for everyone except Goldman.  Countrywide and Wells Fargo targeted Blacks and Hispanics for unaffordable subprime loans. HSBC Bank  laundered money for Mexican drug cartels.  GE Capital skimmed billions of dollars from its customers. Dozens of  hedge fund managers have been guilty of insider trading. Bank of America and JP Morgan Chase hid billions of dollars of bonuses and losses and loans from investors. Banks fixed interest rates in the  LIBOR scandal. They illegally foreclosed on millions of homeowners in the  robo-signing scandal.

This is all the result of free-market deregulated private business. The best-known public bank, on the other hand, is the  Bank of North Dakota, which remains profitable while  serving small business and the public at low cost relative to the financial industry.


One would think it a worthy goal to rehabilitate prisoners and gradually empty the jails. But business is too good. With each prisoner generating up to $40,000 a year in revenue, it has apparently made economic sense to put over two million people behind bars.

…Studies show that private prisons  perform poorly in numerous ways: prevention of intra-prison violence, jail conditions, rehabilitation efforts. Investigations in Ohio and New Jersey revealed a familiar pattern of money-saving cutbacks and worsening conditions.

Consumer Protection

Deregulation not only deprives Americans of protection, but it also endangers us with the persistent threat of corporate misconduct. As late as 2004 Monsanto had insisted that  Agent Orange “is not the cause of serious long-term health effects.” Dow Chemical, the co-manufacturer of Agent Orange,  blamed the government. Halliburton pleaded guilty to  destroying evidence after the Gulf of Mexico oil spill in 2010. Cleanups cost much more than the fines imposed on offending companies, as government costs can run into the billions, or even tens of billions, of dollars.


Buchheit’s whole article is worth a read: