Privatization is one of those words that has been thrown around a lot, usually accompanied by promises of efficiency, lower costs, and better services. But the reality is far grimmer, and people generally don’t understand why. What Is Privatization? It is simply when publicly owned industries or services are transferred to private companies. It usually happens under the pretence of cutting costs or driving innovation, but the underlying reason is always profit by extracting value from public goods by selling assets cheaply. Public infrastructure, built and maintained with taxpayer money, is sold off to private interests for far less than it’s worth. Then this is ongoing when privatized, companies monopolizing sectors, jack up prices, and pay workers as little as possible, all to maximize returns for shareholders.
We need to see that the ideology behind privatization is beyond profit. #Neoliberals say that public services are flawed because people might use them without paying directly (the “free rider” problem) or be forced to pay for services they don’t use (the “forced rider” problem). Privatization supposedly fixes this by turning everything into a transaction. But this ignores the complex nature of economies. Even if you never use public transport, you benefit from reduced traffic congestion. The same logic applies to healthcare, education, and other services that generate economy-wide benefits.
Privatization claims to improve efficiency through competition, but it’s less efficient. Yes, public services can be inefficient due to bureaucracy and mismanagement, but privatization builds inefficiency into the path because profit is a drain, shareholders demand returns, which means money is siphoned away rather than reinvested. Plus, splitting industries to create the illusion of competition reduces economies of scale and creates redundancies.
An example of this is Britain’s rail disaster, rail privatization is a textbook example of this failure. In the ’90s, British Rail was split into dozens of companies: some ran trains, others owned the tracks, and still more handled maintenance. This fragmented was designed to prevent trade unions from gaining too much power, but it created a logistical nightmare. The private company Railtrack, which inherited the infrastructure, cut corners to boost profits, leading to catastrophic accidents like the Ladbroke Grove and Hatfield crashes. In the end, Railtrack collapsed, and the government had to step in and take control through Network Rail. But train operations and rolling stock leasing remain privatized, meaning public subsidies prop up private profits while fares remain some of the highest in Europe.
After 40 years of this mess making, the endgame, is that it doesn’t just fail on its promises, it makes things worse. It centralizes capital, encourages monopolies, and turns essential services into cash cows for the nasty few. Companies prioritize wealthy communities, rely on government bailouts, and pour money into executive salaries while neglecting public needs.
The truth is that public services, no matter how flawed, exist to serve people. Privatized services exist to serve shareholders. And until we break free from the grip of our worship of the #deathcult of neoliberal ideology, we’ll keep paying more for worse services, while the nasty rich fuck wits keep getting richer. It’s past time to rethink privatization, not as a necessary evil but as a failed experiment in greed. Let’s start talking about this, please.