“…these utilities are coveted by investors; that the regulatory environment makes them extraordinarily profitable; and that investors have very little interest in the quality or the long-term operational efficiency of the systems.”
There’s an often unexamined myth that private enterprise will always and inevitably do a better job than government. It isn’t true, and it especially isn’t true for infrastructure.
When I worked in the city, I used to park in a particular parking building which was owned by the council. They handed over management to a private firm. The charges went up with a big bump, and the standard of cleanliness of the facility dropped sharply.
Originally shared by ****
To be clear, I’m not saying that government always manages utilities or other public goods well either. Obviously, it doesn’t. What I’m saying is that adding a profit motive doesn’t magically make for better management or a better outcome for the users of the service, and it often does the reverse.
I live here, and my wife works for the city. It’s been a pretty interesting story from the inside.
I’ll bet. Having worked (as a contractor) for a few government entities, as well as several big corporations, I’ve found it fascinating to see how the process works behind the scenes.