The Money with Katie Show The Truth about "Government Waste," Privatizing Public Goods, & Turning Citizens into Customers
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Feb 26, 2025 Donald Cohen, co-author of "The Privatization of Everything" and founder of the Research and Policy Center in the Public Interest, dives into the intricacies of government privatization. He reveals how privatization often transfers public wealth to private entities, enhancing economic inequality. Cohen critiques the myth of privatization's efficiency and discusses its adverse effects on public services like healthcare. With a focus on the consequences of austerity, he emphasizes the urgent need for citizens to advocate for their community’s welfare amid growing privatization trends.
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Privatization's Cost Impact
- Privatization increases costs by diverting funds to business expenses instead of services.
- Shifting public services to private markets excludes those without money, exacerbating inequality.
Maximus's Profit
- Katie Gatti Tsan highlights Maximus's 20% profit margin from poverty eradication funds as an example of privatization's flaws.
- $1 billion meant for anti-poverty programs goes to shareholders, not those in need.
Efficiency vs. Cuts
- Privatization, often touted as efficient, actually cuts essential services to achieve cost savings.
- This leads to negative consequences, such as unsafe prisons due to lower wages and fewer staff.