1. Seminar Week 4

2. Privatization According to the Congressional Research Service: Privatization might be defined as the use of the private sector in the provision of a good or service, the components of which include financing, operations (supplying, production, delivery), and quality control.

3. End ‘big government’ It is the demand for public services that powers the growth of the government, and there is a systematic political imbalance between those who desire more spending and those who desire less — an imbalance consistently favoring the pro-spending lobby.... [ A] powerful coalition of beneficiaries, service suppliers, political activists, and bureaucrats tends to develop around each federal spending program. It is in the interest of those coalitions to press [Congress] for an expansion of the federal role. Stuart Butler, Privatizing Federal Spending (New York: Universe Books, 1985), p. 2. See also Stephen Moore and Stuart M. Butler, Privatization: A Strategy for Taming the Federal Budget (Washington: Heritage Foundation, 1988).

4. Support for Privatization Disillusionment with federal government’s performance as a provider of goods and services – waste, fraud and abuse – recent GSA $823,000 Las Vegas conference Reduce the size of government Economic conditions have encouraged lawmakers to develop new sources of revenue and control costs Private sector firms have interest in advancement of privatization

5. Criticisms of Privatization Strategy to weaken political left by decreasing the number of unionized employees May adversely affect women and minorities Accountability ‘Hollow Out’ government agencies Promote ‘Iron Triangles’ Risks of going out of business

6. Yellow Pages Test According to Fiscal Policies Institute: Consult the Yellow Pages for Routine Government Services: The state should use a simple "Yellow Pages test" when considering whether to open a government service to competition.

7. Notes in Chapter pg. 111 pg. 118 pg. 119

8. Questions?