Our government has been on a privatization binge for some time. Things that We the People used to just do federally or through state and local governments were closed down and private corporations were hired to do those things instead. This “saved money” because the well-paid public workers were laid off, losing their benefits and seniority, and new workers were hired at the lowest possible wages with few or no benefits.
Of course, this “cost savings” meant that the tax base eroded, the old and replacement workers often had to go on public assistance, property values plunged as the homes of the old workers were foreclosed and the new workers couldn’t afford to buy, schools were strapped as more low-income kids came in, and all the other ways that the transition to a low-wage economy has ended up costing all of us.
But who’s counting?
U.S. Senate Food Service Workers
One privatization story that literally “hits home” is the story of the people who work in the home of our federal government, the U.S. Capitol. In 2008 the U.S. Senate “saved money” by privatizing its food services. Democratic Sen. Dianne Feinstein said at the time, “There are parts of government that can be run like a business and should be run like businesses.”More ...