Concept Of Free Market And Privatization…

Concept Of Free Market And Privatization

Instructions/Descriptions

Concept Of Free Market And Privatization

Student 1. Destynie Ramos

According to Cohen’s (nd) article , it states that the first introduction of the concept of free market and privatization of public goods came to be by Hyack’s book Road to Serfdom that came out in 1944. I believe this book planted a seed for future politicians and leaders to take this concept and allow it to influence their way of thinking. In addition, Milton Friedman’s book, Capitalism and Freedom written in 1962 also provided the framework for the ideologies of free market and public monopoly which are the main ideas behind privatization (Cohen, nd).

The influence of these books were used during the presidency of Ronald Regan, who coined the term “privatization” to support the idea of privatizing public goods and services and eliminate public responsibility. I believe that once Regan used privatization in his agenda this opened the door for future presidents and politicians to be influenced by this ideology and use it themselves. Although President Gorge H. W. Bush did not follow the idea of privatization, President Clinton did use the ideology of privatization in an attempt to reinvent government.

There appeared to be a pattern after Regan in which some presidents viewed privatization as central to their agenda, for example, Regan, Clinton, George W Bush and Obama used privatization to “improve” government. I believe that after realizing the strategy used to shift responsibility to private sectors, most politicians became to normalize the idea of privatization.

Us as the people, could have intercepted this idea by paying closer attention to the services being privatized and the impact it may have on the public. If the public were more informed about the perils of privatization, they may have been more likely to not support the presidents enforcing them. So after Regan introduced the concept of privatization the public could have listened and seen how his ideology either benefited the economy or was detrimental to it and then used their opinions to either support or go against the next political figure who supported privatization.

I believe it is possible to turn it around now but it may take some time to get everyone on the same page and fight for the same cause. People need to be informed on how privatization is weakening democracy and the government, so that they can understand why we must fight against it. By doing so, we can support the figure that does not support privatization and give them a platform to make changes and advocate for the public.

Student 2. Kayla Small

In the article “The History of Privatization” by Donald Cohen I thought there could have been many turning points that’s led us to accepting privatization. I have to agree with Destynie, that privatization was introduced to the public when Frederick Hyack and Milton Friedman written books about the concept. The idea that another option to “help” the community was available… was step one.

Friedman especially promoted two critical ideas that supported privatization, and “gave privatization advocates a new approach by making the distinction between government responsibility and government provision of public goods” (Cohen, nd). Privatization takes away many opportunities for those who cannot afford to obtain services independently (without government support).

It wasn’t until cities across the country were facing fiscal crisis, and needed immediate help even if that required change. In my opinion, this was the beginning turning point in which privatization was normalized, but was fully accepted during the Reagan Years. Ronald Reagan’s election was what conservatives needed to minimize government contributions, and increase privatize public services (Cohen, nd). Although Reagan’s platform discussed much more than privatization, he definitely embraced the idea of privatization. The people may have intercepted at this point, because as the president many will follow.

I think its going to be extremely challenging to turn the privatization back into full government support. For one, many people in corporate have profited off of privatization. Corporations contribute mainly to the wealthy population, and they tend to protect each other’s asset.

Secondly, because corporate has control over the privatized businesses (that are also benefiting the government), the government will do what they can to protect them. Even if that requires the corporations to bribe those for continuous support. To fully answer the question, I cannot see things changing unless everyone comes together to fight for a change.

Concept Of Free Market And Privatization

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