Paul Krugman Blasts The 'Corrupt Nexus Of Privatization'

The New York Times:

Over the past few days, The New York Times has published several terrifying reports about New Jersey's system of halfway houses -- privately run adjuncts to the regular system of prisons. The series is a model of investigative reporting, which everyone should read. But it should also be seen in context. The horrors described are part of a broader pattern in which essential functions of government are being both privatized and degraded.

Read the whole story at The New York Times

Comments

[Democrat in the South]

10:19 AM on 06/29/2012

The private can not exist without the Public sector. The private sector depends totally 100% on the public sector. Hence, the private sector spends massive amounts of money to own the public sector they totally depend on for survival.

When the public totally wakes up to how their tax payer funded Government is being hijacked by for profit private industries, there will be he!! to pay.

I read within the last couple years that the BIG OIL companies are 100% dependent on "GOVERNMENT CONTRACTS" (corporate welfare) for their business/profits. Yet they are insulted that Government does something for the 99% who are left to deal with environmental poisons by BIG OIL.

[mightykelso]

01:32 PM on 06/25/2012

Christie will never achieve higher office because of this corrupt event.

[flinkmeister]

10:53 AM on 06/25/2012

Hey Christie, letgo of my Eggo.

[demisfine]

10:32 AM on 06/25/2012

Four days on the page and only +800 comments??
Christie has sunken to Pawlenty level interest.
Not a good sign for the big man.

[duckpuddle]

09:30 AM on 06/25/2012

Nice picture of Christie. What is that thing in his mouth?

[Clevelandinwi]

09:19 AM on 06/25/2012

You don't have to any further than health care to show Dr Krugman's point. Check the costs of 'private' insurance vs Medicare as an example. 'Privatizing' is a code word in the Republican world for 'we have to make money for our donors'.

[dui]

11:12 AM on 06/25/2012

Not a good example. Medicare costs are artificially low as providers overcharge private insurance to recoup the difference. Krugman has never met a government bureaucracy he hasn't been smitten with. He'll distort the facts to support the need for more government.

[Sherrie Heckendorn]

04:31 AM on 06/25/2012

I have never understood how anyone could think that privatizing our taxpayer services is good.For starters, as the article pointed out, they have to make a profit and they do that by cutting services and paying substandard wages, and the best part is that they are able to use so many loopholes as to pay little tax, so in the end we the taxpayer pay to have substandard services and the revenue coming back to the government is less than it was when it was public. Its simple really, public run, means its non profit and all the revenue goes back to the government and the overhead is much less than if its private and needs to make money, so they cut services and wages and still make a profit and we all lose

[21stcenturyThinking]

12:36 AM on 06/25/2012

Keep it up Paul and that not so smart NJ Governor
will find a way for you not to get paid from Princeton any more.

Then you will understand what recession really means.

[pam45]

11:04 PM on 06/24/2012

Good article that brings up solid truths. "Privatized prisons save money by employing fewer guards and other workers, and by paying them badly. And then we get horror stories about how these prisons are run. What a surprise!"

Krugman said it!

[l78lancer]

10:57 PM on 06/24/2012

Anyone who has worked in a state or local correctional system and exposed to private prison companies recognizes the truths expressed in the article. The only real proponents and beneficiaries private prisons and private prison contracts are the juridictional executives and the company executives. Not only is Krugman right - there is no free market competition, but specifications for request for proposals are written so tightly and so specifically that contracts are almost directed to specific providers virtually negating any real bid process. By the time the outrageout costs and expenses of private contracts come to light the deals are done and the money is too far spent. Regular staffs have often been displaced, thus systems become even more dependent on private contracts. But because much of this has been figured in to the original deal, contract extensions are initiated well before the end of the initial contract. Meanwhile, private prison staff get screwed, public prison staff get screwed, taxpayers get screwed, and inmates get screwed. Executives on both sides are fat, dumb and happy, however.

By the way, Mr. Krugman is wrong about one thing. Aside from trimming salaries and beneifts, the other main way to increase profit is to keep population levels up as well as recidivism. Because many contracts are based on inmate populations, if the numbers go up, so do the charges, increasing profit.

Back in the 1950s patronage ran rampant. Sadly, patronage and cronyism are back and are planned to be around for a long

[Sherrie Heckendorn]

04:33 AM on 06/25/2012

I just read one of the letters that the main'private prison' sent to all the police chiefs in the states telling them to be tough on crime, and they lobby in dc for stiffer laws and longer prison terms, so that they can keep the prisons full. We have only 5% of the worlds population but 25% of the worlds prisoners.

[l78lancer]

04:46 AM on 06/25/2012

Isn't that sickening? Sadly private corrections is like this all across the country. It's been a relatively well kept secret for about 20 years now. Anyone who say's it isn't as described is either clueless or a liar. They are undoubtedly have fits in private now that many states are considering marijuana legalization which will bring down incarceration rates dramatically.

Thanks for your comment. Fanned.

[JoeBlough]

10:23 PM on 06/24/2012

Has anyone ever seen a picture of Christie with his mouth closed?

[Hooponopono]

03:23 AM on 06/25/2012

None exist

[catgirl666]

06:55 AM on 06/25/2012

F&F, now that's an avatar! :)

[Master-T]

09:25 PM on 06/24/2012

Another Christie picture that should be captioned: "Just shovel it in".

[Mercedes]

07:43 PM on 06/24/2012

Well, jut remember which party is in it for only the top 1% and which party is in it for the 99%.

You want to vote for WILLARD Romney, then you're voting for HIM getting $5 Million more in tax refunds every single year because he will raise YOUR taxes (from people that earn $10,000 to $249,999) to pay for HIS tax refund. (Grover Norquist Pledge to never raise taxes only favors the top 1%. The rest of us are going to pay more taxes no matter what Romney and the Republican Tea Party are saying now.)

You vote for the other party, which wants to increase taxes on the top 1% and lower YOUR taxes.

YOUR CHOICE. YOUR VOTE. YOUR FUTURE.

Everyone have a safe week...

Mercedes :)

[Jay Haney]

05:46 PM on 06/24/2012

Any of you folks who survive the nightmare Krugman is talking about, do all the rest of us a favor: rob the motherf***ers who made it all possible for as much as you can.

[SkelDaddy]

04:22 PM on 06/24/2012

Corrections, Inc: just another paver on the pathway to corporate oversight of government.

If you enjoy representation without taxation, vote right wing.