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Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the private sector might handle better. Sometimes the government no longer provides the service and allows private companies to run (and compete with each other) to provide the service (like sometimes happens with garbage pickup). Other times the government contracts with a company that can provide the service cheaper than the government agency could (like when a city contracts with a private landscaping company to trim the trees on public sidewalks). The idea is to have a more efficient, more effective service. Recently there have been some arguments that the United States Postal Service (USPS) should be privatized. Name one pro and one con of privatizing the USPS. If you had the power to privatize the USPS, would you? Explain)

Business Economics, Economics

  • Category:- Business Economics
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