Privatization is a federal agency decision to change a government-owned and government-operated commercial buisness or enterprise to private control and ownership. When privatizing, the agency eliminates associated assets and resources. Since there is no government ownership and control, no service contract or fee-for-service agreement exists between the agency and the private sector after an agency privatizes a commercial activity or enterprise. This means that the now privately owned buisness is free to raise the prices and fee-for-service.
Note: Privatization is spelt wrong. The correct spelling for privatization is p-r-i-v-a-t-i-z-a-t-i-o-n
Privatization is the selling of a public service, such as electricity delivery or health care, to a private company so that the service is no longer owned by the government.
Governments benefit from privatization because costs are eliminated.
An example of privatization is when in 2007, Japan privatized its government owned post office. The new privately owned post office was divided into four different components. A bank, an insurance company, a courier service, and a post office.
Privatization advocates say that:
-Privatization lowers taxes because the service is no longer paid for by taxpayers
and
-the competition that results from privatization improves the quality of service and leads to lower prices.
Privatization is a federal agency decision to change a government-owned and government-operated commercial buisness or enterprise to private control and ownership. When privatizing, the agency eliminates associated assets and resources. Since there is no government ownership and control, no service contract or fee-for-service agreement exists between the agency and the private sector after an agency privatizes a commercial activity or enterprise. This means that the now privately owned buisness is free to raise the prices and fee-for-service.
Note: Privatization is spelt wrong. The correct spelling for privatization is p-r-i-v-a-t-i-z-a-t-i-o-n
Privatization is the selling of a public service, such as electricity delivery or health care, to a private company so that the service is no longer owned by the government.
Governments benefit from privatization because costs are eliminated.
http://www.coxandforkum.com/archives/05.01.17.ThirdRail-X.gif
This cartoon shows that although some believe privatization is the best way to go, many think the government ownership is better because they'll have social security.
An example of privatization is when in 2007, Japan privatized its government owned post office. The new privately owned post office was divided into four different components. A bank, an insurance company, a courier service, and a post office.
Privatization advocates say that:
-Privatization lowers taxes because the service is no longer paid for by taxpayers
and
-the competition that results from privatization improves the quality of service and leads to lower prices.
http://yalibnan.com/site/archives/2005/08/img/privatization%201.gif
This cartoon clearly outlines a major bias that privatization is awesome.
Jaimie Bird, Social Studies 10, Semester 1, period 2
Resources:
-Exploring Globalization textbook
-http://www.coxandforkum.com/archives/05.01.17.ThirdRail-X.gif
-http://yalibnan.com/site/archives/2005/08/img/privatization%201.gif