Daihatsu Graceland
The cheerful cynic

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donderdag 11 december 2003

Economic thinking in the political arena

We live in an age where private companies seem to be getting more powerful than nation states. However, the states have found a way to deal with that. It’s called privatisation. It works like this. You privatise some sector that provides an essential service and shouldn’t be privatised at all. Electricity for example. You sell off your assets to the highest bidder. You don’t regulate at all and let the companies do their capitalist thing. Prices will fall and so will reliability. Companies in trouble. Stocks fall. You buy back the whole thing, which is now neatly reorganised but worth next to nothing. Nice profit. Rinse. Repeat.

8:54:49 PM    comment [] trackback []

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