Privatization in the United States

rdf:langString Privatization in the United States

rdf:langString Privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector (the state or government) or common use to the private sector (businesses that operate for a private profit) or to private non-profit organizations. State, county, and city economies are constantly challenged in running government operations. A government-run sector may transfer the responsibility for carrying out the service and/or resource management activities and responsibilities to the private sector. Privatization can be a solution for dealing with particularly problematic aspects within a government's administration. Often municipalities will turn to privatization to solve an issue. A city or county may, for example, have vehicle maintenance cost increases that exceed revenues consistently and look to privatization as a means of controlling increasing costs. It may not, however, address other factors that are contributing to the cost increases or revenue shortfalls, such as regulation. Over time, compensation, for instance, could be a problem that also applies to other aspects of the government.