The Price of Privatization

Paper Summary:

In this paper the author looks at the effects of privatization of public companies in the United Kingdom. The author reminds us that with the election of a conservative government over two decades ago, they were all for open market philosophy. Hence the start of privatization of large companies. The author talks about the first few large companies that were privatized. As a result he believes that the market is much more competitive and has produced a better quality of managers, better financial stability, and greater customer-oriented skills. He states that while other European countries are still floundering with their government controlled monopolies, the UK has proven how well privatization works for everyone. The paper also looks at the opponents of privatization who say that regulators are consistently pressed by these growing private companies. He gives an example of the private water and electricity companies that raised their prices so high that there were deaths from the winter's cold and an increase in diseases carried in the water. In conclusion, the author gives us his opinion that privatization is unacceptable, and affects the lives of so many people without a second thought.

From the Paper:

"One of their main concerns is the rising threat of monopolies
taking over the companies, and even proponents of privatisation
conclude that what really matters is competition in this system. (see
Footnote 1) Cable and Wireless and British Petroleum are fine
examples of this mistrust, since they have a plethora of power and
wealth. Another concern the antiprivatisationist have voiced is the standard of the workers in these privatised companies that have
shown to diminshed."

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