The History Podcast Invisible Hands: 6. There Is No Alternative
Apr 30, 2025
The rise and fall of Thames Water reveals the dark side of privatization and the realities of modern capitalism. Once a beacon of efficiency, it now grapples with sewage in water and financial collapse. Tracing back to post-war ideologies, experts discuss how globalization has sparked populist movements, shaking faith in the free market. With pivotal moments like Brexit reshaping economies, the podcast questions whether there are viable alternatives to the current economic model. Can we find a way back to accountability and community control?
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Privatisation Anecdote of Thames Water
- Thames Water was privatised in 1989 and initially saw shares rise in value after the government encouraged small investors to buy in.
- However, most individual shareholders sold quickly, leading to ownership changes and new private investors interested purely in profit.
Macquarie's Profit-Driven Mismanagement
- Macquarie bank bought Thames Water, treating it as a cash machine rather than a utility.
- This led to massive dividends to shareholders but underinvestment in infrastructure, causing water pollution and leakage.
Profit Over Infrastructure Causes Pollution
- Despite Thames Water making healthy profits, it failed in its environmental duties because borrowed money was used to pay investors rather than repair infrastructure.
- This led to record fines and public outrage over sewage pollution.