Tag: privatization

Categories
free trade & free markets too much government

Keeping Parks Open

“It is not necessary for park budgets to be threatened during state fiscal crises.”

Good news. The vast majority of states now endure tightened budgets and panicked scurrying to rescue their finances from frighteningly bloody conditions of red.

In this financial environment, cutting non-​essential services sometimes seems like a no-​brainer. Park funding tends to get hit hard.

A PERC Case Study by Holly L. Fretwell, Funding Parks: Political versus Private Choice — quoted above — looks into a solution that most politicians rarely consider: private management.

Not full privatization, mind you. That’s too tough for most people to take.

Private management of publicly owned parks, on the other hand, makes a kind of obvious sense.

Fretwell looks at Recreation Resource Management, the largest park management operation in the country. The company leases rights to run state and federal recreation sites, managing more than 175 such units in twelve states. In arrangements such as RRM’s, lessees pay “an annual lease, or rental fee, in addition to a percentage of the total fees earned.”

When run by businesses, parks “are not subject to the same political appropriations process” as government-​run parks. By leveraging the profit motive — and its associated economies — parks can serve the public without over-​taxing us at a time when we are sorely pressed for money. Contracts with private firms can avoid at least some of the problems of bureaucratic incentives.

The bottom line advantage, she insists, is “consistent, quality stewardship.”

Which is surely what we all want.

This is Common Sense. I’m Paul Jacob.

Categories
local leaders

Georgia’s Model City

Local governments suffer from a big problem: bigness. Too often they expand their scope of services, and, in so doing, progressively fail to cover even the old, core set of services. You know, like fire and police and roads and such.

The solution is obvious. Mimic Sandy Springs.

This suburban community north of Atlanta, Georgia, had been ill-​served by Fulton County. So a few years ago the area incorporated. And, to fend off all the problems associated with the “do-​it-​all-​ourselves” mentality, the city didn’t hire on a huge staff of civil servants. Instead, it contracted out the bulk of those services in chunks.

Now, the roads get paved and the streets are cleaned and the waste is removed better as well as cheaper than ever. The town’s mayor, economist Eva Galambos, noted that in five years the town saw 84 miles of roadway newly paved, up from the five miles they were lucky enough to squeeze from Fulton County’s operation during the decade before incorporation.

Reason Foundation, a think tank known for its privatization emphasis, has been on the story from the beginning. A 2005 appraisal predicted that the town would become a “model city.” That prophecy seems to have been on the money, and a Reason TV video emphasizes this with the shocking fact that the town “has no long-​term liabilities.”

As the rest of the nation’s cities, counties and states lurch into insolvency, Sandy Springs shows a way out.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies too much government

Ride the Market Express

What’s the biggest expense for people in the lowest income bracket? Housing? Food? Medical care?

No.

It’s transportation.

Across all income levels, transportation comes in as the second largest expenditure. It’s a big deal.

Places to go; people to see. Often, it’s business to do. Our way of life depends on moving things and people around.

The Washington Post headlined a recent story, “Infrastructure is a priority, survey shows, but paying for it isn’t.” The implication? Americans want a free lunch.

That’s bad. But not true.

The Post should have made it clear that people are specifically skeptical about “paying for it” through higher taxes. The Rockefeller Foundation Infrastructure Survey found that over 70 percent of us oppose raising the gas tax, 64 percent are against adding tolls to existing highways, and 58 percent aghast at the thought of a tax on each mile driven.

However, the survey’s most interesting number was 78 — that’s the overwhelming percentage of Americans who want private sector investment in transportation projects. As consumers, we know we’re not responsible for all the costs and cost overruns involved in bringing most products or services to market. When we decide to purchase something we do pay some of these costs, but not before. Privatizing transportation would allow market forces like “price” and “consumer demand” to get better transportation to market, with investors — not consumers — taking the bulk of the risk.

Or we could let politicians and bureaucrats continue to make things worse.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture local leaders too much government

Profiles in Non-Courage

What has to happen before government officials reduce the loot they’re lobbing to special interests at the expense of the wallets and future of everybody else?

Armageddon?

The city council of Kansas City, Missouri, won’t permit even an inquiry into how the burg might save bucks.

At Show-​Me Daily, David Stokes notes that a council committee has tabled (killed) a proposal “that called for SIMPLY STUDYING the idea of contracting out the management of certain city assets,” an idea proposed by Mayor Mark Funkhouser. But city unions predictably went to DEFCON 1. The resolution would have authorized the city manager to request information from firms interested in handling things like parking garages and sewer plants.

The mayor says he thought that they might have creative ideas about how to handle things more efficiently. C‑r-​a-​a-​a-​zy, eh? Well, this mild, er, radical notion is off the table, at least for now.

Stokes hopes the council reconsiders while they are in a position of relative strength. If they wait until really pushed to act by “economic realities . . they won’t be [able] to get the best agreement for taxpayers.”

But aren’t the economic realities already here, for Kansas City and every other town in post-​2007 America? 

Single-​issue voters are always going to shout louder than the general public about reforms that affect their short-​term interests. Political “leaders” should do the right thing, not follow the path of least political resistance.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets general freedom too much government

A Million Jobs, Gone

You’re fired! Now get a real job.

Does this sound mean? 

It’s just what Cuba’s biggest employer plans to say between now and March — fire half a million workers and tell them to find other jobs, or (better yet) go to work for themselves.

After March, another half million will be given pink slips.

Or so say the Castro Bros., who are, in effect, the chief employers in Cuba. 

Just like a despot, you might say. But hey: The country is broke, and the initial hiring of everybody by the government (which Fidel ran for scores of years, and his brother, Raul, now runs) was, itself, despotic. Thankfully, as more and more outlets of the “Cuban Communist Corp.” go under, the Cuban commissars say they will ease up on the regulations that now prohibit small, entrepreneurial businesses.

Of the many comments I’ve read about this, I was amused most by Tom Knapp’s. After drily noting that it is the Castros who will build down government, not Republicans in the U.S., he explained how the commies had kept their transportation going all these years: By maintaing old American cars from the ’40s and ’50s. Now that trade restrictions will likely be eased, those well-​kept-​up vintage cars could help “finance an explosion of economic prosperity just by tapping the U.S. classic car collectors’ market.”

Hope so.

And I hope the newly fired will transition to a slightly freer economy without too much trouble.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies

The Right Stuff Needs No Subsidy

When the president, in a rare fit of fiscal sanity, proposed cutting back on NASA, the subsidized sector of the high tech industry — the military-​industrial complex — felt a shiver. 

The first, I hope, of many. 

NASA has long had a special, high-​toned place in that hierarchy of government-​funded industries. It’s the civilian wing of the military’s industrial juggernaut. As if to prove that government can accomplish things, NASA actually landed men on the moon. And it kept an ungainly shuttle program going long after its rightful expiration date.

But it’s time for private enterprise to take over in the space industry. 

High time.

Still, questions remain — at least in the public mind. As a fascinating MSNBC article put it, “Can private companies build and operate space vehicles safe enough to carry astronauts?” The article’s author, James Oberg, focuses on the emerging market of space taxis, but does ponder the possibility of putting real astronauts out in space, privately. He consulted skeptical NASA engineers, who wondered how unsubsidized, for-​profit businesses could mimic NASA’s record.

Where’s their collective experience?

Answer: Let most of NASA go, and that experience would be up for hire.

Our hopes for the future conquest of space depend, in part, on ceasing to subsidize it. Congress and the president should embrace that future, and realize that it is time to relinquish their control over another whole industry.

This is Common Sense. I’m Paul Jacob.