QUOTE(Vermillion @ Dec 28 2006, 07:36 AM)

What is NOT at all true is the assertion that private companies run provide better products or services than national companies. In fact the opposite is usually true, and for the exact same reason. Private companies have a necessary view that starts and ends with the bottom line, while national companies set a certain standard of serviceor product which they can run regardless of the bottom line.
Privatising the Royal Mail is a perfect example. Prices dropped slightly, but services were slashed and output suffered terribly. It was simply not possible for a private company to keep the same standards of service for the prices charged.
For any industry, you need to look at what the population wants as an output to decide which system is better. If profitability is critical, then private industry is better. If a certain standard of product, which may not be achievable while maintaining profitability, is critical, then national industry is better.
Last note, all this assumes oversight and lack of corruption. Looking at nationalised industries of the former USSR as an 'example' of nationalisation is foolish, as that system had VAST other problems as well which prevented most of its industries from functioning. Looking at the USSR as a model for nationalisation is like looking at Enron as a model for privatisation.
Umm... maybe the Canadian mail scenario is true, but in the US, the USPS is the least efficient for sure, and not always the least expensive. Funny enough, even the US Postal Service uses Fed Ex to carry its overnight and priority mail. (Through 2007)
While I agree with parts of your post, something you said is inherently not true in the United States, and generally anywhere else a governmental monopoly exists. You insinuated that
national companies set a standard that can be run regardless of bottom line.
This is flawed in that generally any product or service wanes in the face of little or no competition. My favorite example is the Department of Motor Vehicles in the US. Getting a driver's license, registering a vehicle, or other related tasks take an
ETERNITY. It's impossible. Conversely, in recent years, most states have privatized inspection of motor vehicles. This has made the process
FAR BETTER, both in terms of cost to the state as well as consumer experience.
The general consensus is that if I realize that there is a direct competitor down the street or in the general vicinity, selling the same or a similar product, I have to beat their product/service somehow. If I sell it cheaper, but the product is less valuable, I'm no longer in direct competition. The issue is that prisons have no competition at all really.
This is 100% true with the correctional system in general. I will say that I have limited personal experience, but do have some professional experience with both state as well as local prisons in Louisiana. I worked for Sherwin Williams as I worked my way through college. During the 2 1/2 years I was there, I garnered a contract for two state prisons and two parish prison systems. We sold paint obviously, and sundry products. The issues that arose with prisons were even
worse than those encountered by selling to the Federal Government (i.e. Barksdale AFB, etc). It took multiple forms, numerous contacts, and far too much work to get a small 15-20 gallon order to a jail. The most important thing to note is that the employees
could've cared less that it was a hassle. This is the general issue in prisons. Costs are
rarely considered to be an issue at the local level, quality basically centers around keeping prisoners in, and the end result for the correctional system in general is repeat crime.
I believe that we could easily use an "inspection sticker" scenario with some portions of the general correctional system, and come out far ahead. For instance, we could allow drug related criminals, or maybe juvenile (non violent) criminal rehabilitation and supervision to be outsourced as a start.
I believe that there are three main reasons this would be beneficial.
1. Currently- our prison system seems to work as a school for future crime as opposed to a rehabilitation system. Outsourcing would allow us to have clearly defined goals that a private company would be tasked to achieve (and would create innovative ideas to get there).
2. Private companies would find it easy to alleviate "red tape" and "bureaucracy". These inherent issues have costs. If you have 5 extra forms to be processed, someone has to process them. Someone has to supervise these processors, etc. Get it?
3. The market would dictate success, and results would be demanded. Right now, we have a somewhat cynical view of this part of US government.
Obviously, the judicial system will still need to be a function of government, just as registering vehicles and managing driving rights, etc. However- why not outsource portions?