Tuesday, February 7, 2012

Does privatizing prisons save money?

Rightardia has pointed out it is generally more cost effective for government handle large programs than private enterprise. Private enterprise has usually about  twice the overhead because of corporate salaries, profit and stock dividends.

When you privatize a government function, you must create a public service commission to monitor the privatized organization and to make decisions on annual rate increases.

In the long run the privatized function may cost the tax payer more money. Certainly, the workers in the private prisons will be worse off than the government prison employees. Their salaries and benefits will be lower and few will ever see a pension.

But the people in the board room and corporate offices will make out like bandits.

Rick Scott knows. He became a billionaire milking the Medicare and Medicaid medical systems.

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