Imagine if the federal government started to privatize everything, other than the military and other tasks provided specifically for the federal government in the Constitution.
Sandy Springs, GA, (pop. 101,908), a city near Atlanta GA, did exactly that, back in 2005. Everything–other than fire and police–was hired out to private, for-profit companies.
Most would predict disaster. Here’s what actually happened:
The town is run very efficiently, with zero backlogs in permit requests. Call the city, and you’ll be surprised to find that you actually get a friendly person on the other line! The city has a 24/7 non-automated customer service hotline which fields about 6,000 calls per month. It also has a state of the art traffic system with cameras and a high tech command center.
When people come to Sandy Springs, they usually have no idea that it’s privatized, says Sharon Kraun, media relations director for the city. There are no signs with corporate logos or anything like that. According to Sharon, “What people can tell is that the city is well taken care of, and the residents who live here or individuals who work here, like being here and are happy with the level of service provided.”
Imagine if Social Security and Medicare were run this way. Of course, if health and retirement insurance were totally private, as they should be, people would have choices about the plans or companies to utilize, or whether to utilize any at all. In a free market, innovators legitimately seeking profit would dream up new ways to provide cost-effective services to people, and so long as fraud were not involved, all would be legal.
Imagine if federalized public education were run by private sources. Of course, it’s unlikely millions of people would choose one gigantic, inefficient model for entrusting their kids’ education. Innovation and accountability for results would rule a free marketplace for education. What we have today is just the opposite: Communism in education, i.e., single-payer, one-size-fits-all run services by unaccountable teachers’ unions who reward ineptitude and place politics above education.
Health care and education are the two biggest examples of where privatization is needed. The point is not whether bigger is better, or smaller is better. It’s up to individuals to decide for themselves. If people in mass numbers willingly go towards a gigantic private provider of services—Apple, Amazon.com, and so forth—then that’s fine. This means these entities are pleasing the needs of most people. If they stop, someone else will come along to fill the void. Just ask IBM or Kodak.
Sandy Springs is a small city compared to the rest of the country. But the principles are the same.
When the project first started, the University of Georgia estimated that the city would need 828 employees. But because the town is managed by a private company, they’ve cut their workforce down to just 471 people. Besides fire and police, the city only has eight full-time public employees.
If Republicans really cared about smaller government, they would run to privatization, or at least partial privatization, as a start. They’d pour money, energy and talent into promoting it; and they’d put up with all the ruthless attacks by leftist-socialists for a purpose which could actually lead somewhere.
And here’s the key: Under privatization, a company can go out of business.
If part of the government performs poorly, the city can fire that company, and bid the contract to another company. In 2011, the city said farewell to the main company that was managing the vital functions of government CH2M Hill, and opted to go with another company. This saved the city over a million dollars.
Bingo. If you know you can go out of business, or lose a contract, then you’re more likely to act with accountability and responsibility.
Citizens are forced to participate in federal education, at least by paying it, whether they have school-age kids or not, and whether those kids go to public school or not. Similarly, citizens are forced to participate in Social Security and Medicare, because payroll taxes are not an option. They’re not permitted to take responsibility for finding their own medical or retirement plans, and there’s no free market to speak of to provide them with those options. As a result, these entities do not have to be efficient or financially solvent, because they’re politically protected and know they’re never going anywhere.
If government still takes responsibility for contracting out to private companies things which citizens should arguably do and pay for themselves, it’s admittedly not full privatization. But even partial privatization has made a huge difference in Sandy Springs GA. Why? Because you cannot beat the accountability and efficiency of private, for-profit enterprise, especially when contrasted with government. Leaving aside the need for a government to enforce upholding of contracts and to punish theft and violence, private wins out over government – every time.
I have a dream. And my dream is that someday soon voters and citizens will wake up to the benefits of total economic freedom, including privatization of things now run by government. Once they do, the right politicians will emerge and rise to the top. Not a moment sooner.
It’s only a dream. But it’s a dream that could become reality, if only people would think; and it would truly change the world and make America great again.
Follow Dr. Hurd on Facebook. Search under “Michael Hurd” (Rehoboth Beach DE). Get up-to-the-minute postings, recommended articles and links, and engage in back-and-forth discussion with Dr. Hurd on topics of interest. Also follow Dr. Hurd on Twitter at @MichaelJHurd1