I have simply never understood the economics of contracting out. There are still salaries to be paid to get a job done. If you pay less, you get less-- usually--- in lower quality people, higher turnover rates, less diligence to duty. Meanwhile, government NEVER needs to make a profit and can if necessary operate in the red.
Private companies have to pay "executive salaries" which are often far higher than what a City Manager might make. Private companies have to pay "stockholder or investor dividends," and that diverts money from the task which needs doing. And sadly, private companies probably have to pay kick-backs to keep their contract or get it in the first place.
The whole idea makes no sense. I'd say more about private contracting in Iraq and Afghanistan but I'd get points for
going into politics instead of sticking with policy.
When you work for government, e.g., police or EMS, or firefighter, you can console yourself about pay a little bit with the solace
that you are engaged in a patriotic act. That goes away when working for a contractor who owes you no loyalty, and you therefore owe it no allegiance.
When you hear the words "privatization" and "contracting out" a shiver should run up your spine. Unsaid will be the lost
livelihoods and the tax dollars diverted to private pockets.
I have no doubt we will see more and more efforts at privatization; even the conversion of some state Universities to
Private ownership. Its the way the ultra rich become more ultra rich.