When Government Downsizing, They Often Contract with Private Companies to Perform What Was Once Considered to Be the Traditional Work of Government...

Good Essays
As governments downsize, they often contract with private companies to perform what was once considered to be the traditional work of government. What are the advantages and disadvantages of privatizing jails, public schools, military plane maintenance, and state welfare agencies, and state employment agencies?

When government contract with private companies to perform what was once considered to be the traditional work of government, it is termed as privatisation. Privatisation is occurring at a rather impressive speed in United States. For example, there are over 100 privatised prisons in the country (Kissane, 2007). Other forms of privatisation occurring in United States include privatisation of schools, military plane maintenance, state welfare and employment agencies and hospitals. Privatisation has become a very controversial topic in the country due to its wide range of advantages and disadvantages.

In terms of advantages, privatisation of services such as jails and public schools will help to reduce the economic burden on the government. This allows the government to have more funds to devote to other goals such as to lower inequality or providing access to education. Furthermore, the government of United States have always been known for its budget deficit. As such, privatisation can help to reduce this budget deficit and also prevent overcrowding effect from occurring when government borrows funds to sustain what was seen as traditional work such as maintaining prisons and employment agencies. Next, another advantage of privatization will be the improvement in quality of service due to increase in competition. Privatisation will increase number of firms in the industry. As a result, competition will force these firms to increase efficiency and quality of work and this can benefit the public who are able to enjoy services of better quality at lower prices.

In terms of disadvantages, privatisation of traditional work of



References: Kissane, K. (2007). “Violent guards gang accused of running jail”. Retrieved November 16, 2009 from: http://forum.prisonplanet.com/index.php?topic=84650.5;wap2

You May Also Find These Documents Helpful

  • Powerful Essays

    Government Contracts

    • 8153 Words
    • 33 Pages

    Introduction……………………………………………………………………………………………3 2. Contract………………………………………………………………………………………………..3 3. Government Contract………………….………………………………………………………………3 4. Contracts and Government Contracts…………………...……………………………………………..4 5. Formation of Government Contracts…………………..…………………….………………………...5 6. Doctrine of Executive Necessity in Government Contracts………...………………………………....6 7. Doctrine of indoor management in Government contracts……….………………………………….8 8. Implied Contract with Government……………………………………………………………………8…

    • 8153 Words
    • 33 Pages
    Powerful Essays
  • Good Essays

    Government Contracts

    • 858 Words
    • 4 Pages

    “What is this class about,” I thought to myself when I first registered for the Intro to Acquisition and Contract Management Class. Once I attended the class, I quickly realized that Government contracting is a big deal, because this is how the Government procures their goods and services. The U.S. federal government is the leading consumer of goods and services in the world, awarding Billions in contracts every year. There are rules and regulations mandated by Congress that have to be followed…

    • 858 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Babylonian Government Babylonia had a very good and simple government. Babylonia had a Monarchy government run by many kings. Hammurabi (6th king of dynasty) provided Babylon with a strong central government. This government was fair to all citizens and easily controlled. All the economy was controlled by the government, thus there were no private businesses. To keep the control of the economy kings sometimes placed priests in charge. Important Contributions…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    should not be forgotten in the middle. [Year] Tasha Corbin [Company name] [Date] As illustrated in the photo below, this train has a front car, a passenger car and a caboose. Stakeholders, in my opinion are the “passenger car” of this train and should not be forgotten in the middle. [Year] Tasha Corbin [Company name] [Date] BUSINESS-It’s What Drives America BUSINESS-It’s What Drives America As a senior level accountant, I am often given the daunting task of identifying candidates for accounting…

    • 1716 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Industry downsizing has been a major part of the corporate world, even government agencies are downsizing. GovernmentExecutive.com "covers the business of the federal government and its huge departments and agencies - dozens of which dwarf the largest institutions in the private sector" on its website. Read the assigned Government Executive article and answer the following questions: Which industries have substantially reduced fixed cost commitments? Do you believe this reduction in costs has…

    • 400 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Evaluating Contracts Michael A. Clinton Professor Canuto Campos Contract Administration and Management – BUS 330 Sep 4, 2012 The federal government contracts for an enormous amount of its goods and services, whether big or small, with the intent of fulfilling the request with a fair and reasonable price. This cannot always be accomplished due to the various types of contracts and the numerous characteristics that go along…

    • 1612 Words
    • 7 Pages
    Better Essays
  • Good Essays

    To what extent can the British system of government be considered a cabinet government? Cabinet government is a system of government where cabinet is the main policy maker, it is the center of government, it is able to oversee and largely control government activities and it forms the base of collective ministerial responsibility. In recent years though, it has lost, to some extent its policy making function as large departments have become more independent and it now deals with emergencies…

    • 1033 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Sargon was one of the first individuals to establish an empire. Sargon's rise to the throne was impressive due to the fact that he came from obscure beginnings. As a newborn Sargon was cast away into the Epurate river by his mother. Sargon was rescued by a Ur-zababa gardner in the ancient city of Kish. Ur-zababa appointed Sargon to be his cupbearer which meant that Sargon served as an adviser. In the coming years Sargon began conquering cities in Mesopotamia. Rapidly Sargon created the Akkadian empire…

    • 143 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Running head: THE BRANCHES OF GOVERNMENT The Branches of Government Alicia Sanders University of Phoenix His 301 The Branches of Government Ever wonder how our government works? The government was divided into three branches: the legislative, executive, and judicial. What were the reasons our forefathers divided the government into these branches? Each branch works together as a whole by a system of checks and balances in order for the government to be run properly and no one branch…

    • 1718 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    What is Local Government

    • 357 Words
    • 2 Pages

    1. What is Local Government - “Municipal Government” is form of public administration which in a majority of context, exists as the lower ties of administration within a given state. It is generally ac within powers delegated to them by legislation or directives of the higher level of government. Local Government as Political Subdivision Are the local governments created by the states to help fulfill their obligations? Political subdivisions include countries, cities, towns, villages. A municipality…

    • 357 Words
    • 2 Pages
    Satisfactory Essays