privatization

By Nathaniel Matthews-Trigg - Common Dreams, August 12, 2018

The notion of the commons refers to shared land, publicly available for all people to access for leisure and when times get tough, for survival. Publicly shared lands have existed since humans first walked the earth but have progressively been enclosed for individual sustenance or for profit. The most profound period of enclosures came with the introduction of European capitalism, and mass displacement of agricultural people to toil in industrial factories.

Throughout European and U.S. colonialism, the genocide, enslavement, and displacement of indigenous people from their lands was “justified” via the pseudo-science concept of Social Darwinism—the notion that humans inherently compete for resources and the most violent and coercive are rightfully in charge. Similarly, the pseudo-science tragedy of the commons was created to justify the privatization of public lands. This “tragedy” was based on the premise that shared resources will inherently be exploited and destroyed by the unruly public. That if left to their own volition people are inherently greedy, they don’t think in the long-term, they don’t communicate, and just like Social Darwinism, they must compete. Economist Elinor Ostrom debunked the tragedy of the commons and in doing so became the first woman to win a Nobel Peace Prize for Economics. 

Our atmosphere, a publicly needed space containing many vital resources such as nitrogen, oxygen, and carbon dioxide—may seem to the untrained eye to be the tragedy of the commons playing out above our heads. But this is hardly the case, and one must only take their head out of the clouds and refocus on the social developments on-the-ground to see that climate change is really the tragedy of the enclosures, the inevitable consequence of capitalist privatization.

"Capitalism's grow-or-die imperative stands radically at odds with ecology's imperative of interdependence and limit. The two imperatives can no longer coexist with each other; nor can any society founded on the myth that they can be reconciled hope to survive. Either we will establish an ecological society or society will go under for everyone, irrespective of his or her status." —Murray Bookchin

Capitalism is an economic system based on competition, and competition is a state of constant warfare. The competing corporation must always be in the process of growing, strengthening, improving in combat, and always ready to strike—or risk losing everything to someone or something that’s biggest, stronger, or more strategic. For corporations, success is based on profit, and profits are used to continue the cycle of growth, exploitation, and political influence. 

The long-term consequences of a corporation’s actions are ignored by the corporation because short-term threats and successes are paramount. The moral implications of a corporation’s actions are ignored by the corporation because short-term threats and successes are everything. It’s a toxic environment of immediacy, anxiety, and violence—that leaves an epoch of garbage, pollutants, and suffering in its wake. 

By Jeff Bryant - Common Dreams, February 8, 2018

The warnings came right after the storm: Hurricane Maria’s devastation of Puerto Rico would be used as an opportunity to transfer management of the island’s schools to private operators of charter schools, and introduce voucher programs that would redirect public education funds to private schools.

Sure enough, with nearly a third of Puerto Rico’s 1,100 schools still without power and hundreds more plagued with crumbling walls, leaky rooves, and spotty Internet, Governor Ricardo Rosselló recently announced he will propose to create charter schools and voucher programs as a recovery strategy for the island’s education system.

That announcement followed shortly after a new fiscal plan from Rosselló that included closing over 300 of schools.

By Pete Dolack - CounterPunch, January 29, 2018

The Trump administration’s plans to rebuild infrastructure in the United States have been leaked, and it appears to be as bad as feared. At least three-quarters of intended funding will go toward corporate subsidies, not actual projects. It is possible that no funding will go directly toward projects.

There’s no real surprise here, given that President Donald Trump’s election promise to inject $1 trillion into infrastructure spending was a macabre joke. What is actually happening is that the Trump administration intends to push for more “public-private partnerships.” What these so-called partnerships actually are vehicles to shovel public money into private pockets. These have proven disastrous wherever they have been implemented, almost invariably making public services more expensive. Often, far more expensive. They are nothing more than a variation on straightforward schemes to sell off public assets below cost, with working people having to pay more for reduced quality of service.

That is no surprise, as corporations are only going to provide services or operate facilities if they can make a profit. And since public-private partnerships promise guaranteed big profits, at the expense of taxpayers, these are quite popular in corporate boardrooms. And when those promises don’t come true, it taxpayers who are on the hook for the failed privatization.

The collapse earlier this month of Carillion PLC in Britain put 50,000 jobs at risk, both those directly employed and others working for subcontractors. The holder of a vast array of government contracts for construction, services and managing the operations of railways, hospitals, schools and much else, Carillion received contracts worth £5.7 billion just since 2011. Overall, an astonishing £120 billion was spent on outsourcing in Britain in 2015.

What did British taxpayers get for this corporate largesse? It certainly not was the promised savings. Parliament’s spending watchdog agency, the National Audit Office, found that privately financing public projects costs as much as 40 percent more than projects relying solely on government money. The office estimates that existing outsourcing contracts will cost taxpayers almost £200 billion for the next 25 years. (This report was issued before Carillion’s collapse.) In response, Labour leader Jeremy Corbyn said, “These corporations need to be shown the door. We need our public services provided by public employees with a public service ethos and a strong public oversight,” The Guardian reported.

Naturally, there was one group that did quite well from this privatization: Carillion’s shareholders, who reaped £500 billion in dividends in the past seven years. But it is the government that will have to pick up the tab if the company’s employees are to continue to be paid. On top of that, the company’s pension shortfall reached £900 billion, according to Reuters.

By no means is Carillion’s collapse the only privatization disaster in Britain. A bailout of the corporate-run East Coast rail system is expected to cost hundreds of millions of pounds. There are numerous other examples that have proven windfalls for corporate executives but expensive mistakes for the public.

By MST - Socialist Worker, January 30, 2018

By Wenonah Hauter - Common Dreams, January 23, 2018

“In Puerto Rico, hundreds of thousands of people are still reeling from the destruction caused by Hurricane Maria. In a time of such dire need, the Trump administration has failed to provide the support needed to restore water to 7 percent of Puerto Rican residents and power to the nearly one in three residents going without, paving the way for today’s catastrophic announcement. The decision to privatize Puerto Rico’s state-owned power company follows the same dangerous path mapped out in the Trump administration’s draft infrastructure plan.

“Whether it’s water or energy, privatization helps Wall Street at the expense of the wellbeing and health of communities, particularly low-income families and people of color. The leaked infrastructure plan from the Trump administration similarly provides a blueprint for handing over our public land and public water to Wall Street. It seeks to privatize our local water systems and other critical public services, prioritizing limited federal dollars to Wall Street and corporate investors. This scheme would also sell off federal assets and create a new infrastructure fund by opening up federal lands and waters to mineral and energy development benefiting the oil and gas industry.

“A just and equitable infrastructure plan would dedicate funding for water systems, have a progressive revenue stream, and prioritize vulnerable communities with the greatest affordability and public health needs like Puerto Rico. This plan does none of this.

“Federal funding for water infrastructure is at its lowest point in decades. Instead of reversing the decline, Trump’s plan provides zero dollars to the highly successful State Revolving Fund programs, which are the main source of federal support for our local water and sewer systems. Meanwhile, it seeks to open up the clean water fund to private entities. This amounts to taking away existing federal money from our local governments to give to big water corporations.

“From Flint to Puerto Rico, our communities deserve better from our leaders. Our public water systems need dedicated, annual federal support to make sure that every person in our country has safe and affordable water.”

By Kiera Feldman - Pro Publica, January 4, 2018

Shortly before 5 a.m. on a recent November night, a garbage truck with a New York Yankees decal on the side sped through a red light on an empty street in the Bronx. The two workers aboard were running late. Before long, they would start getting calls from their boss. “Where are you on the route? Hurry up, it shouldn’t take this long.” Theirs was one of 133 garbage trucks owned by Action Carting, the largest waste company in New York City, which picks up the garbage and recycling from 16,700 businesses.

Going 20 miles per hour above the city’s 25 mph limit, the Action truck ran another red light with a worker, called a “helper,” hanging off the back. Just a few miles away the week before, another man had died in the middle of the night beneath the wheels of another company’s garbage truck. The Action truck began driving on the wrong side of the road in preparation for the next stop. The workers were racing to pick up as much garbage as possible before dawn arrived and the streets filled with slow traffic. “This route should take you twelve hours,” the boss often told them. “It shouldn’t take you fourteen hours.”

Working 10- to 14-hour days, six days per week, means that no one is ever anything close to rested. The company holds monthly safety meetings and plays videos, taken by cameras installed inside the trucks, of Action drivers falling asleep at the wheel. “You’re showing us videos of guys being fatigued, guys falling asleep,” a driver told me. (All Action employees asked for anonymity for fear of retaliation.) “But you aren’t doing anything about it.”

“In the history of the company I am sure there have been times where supervisors have inappropriately rushed people,” said Action Carting CEO Ron Bergamini. “They shouldn’t be, and they’d be fired if they ever told people to run red lights or speed. But you have to find the balance between efficiency and safety, and that’s a struggle we work on every day. But you cannot turn around and say, ‘Hey just take your time, go as long as you want.’” He pointed out that workers can anonymously report concerns to a safety hotline. As to the questions of overwork and driver fatigue, Bergamini responded, “That’s a struggle that the whole industry has — of getting people to work less.”

In the universe of New York’s garbage industry, Action is considered a company that takes the high road. A union shop, it offers starting pay of about $16 per hour for helpers and $23 for drivers, far more than many other companies. And unlike some other companies, Action provides high-visibility gear and conducts safety meetings. But since 2008, the company’s trucks have killed five pedestrians or cyclists.

In New York City overall, private sanitation trucks killed seven people in 2017. By contrast, city municipal sanitation trucks haven’t caused a fatality since 2014.

Pedestrians aren’t the only casualties, and Action isn’t the only company involved in fatalities. Waste and recycling work is the fifth most fatal job in America — far more deadly than serving as a police officer or a firefighter. Loggers have the highest fatality rate, followed by fishing workers, aircraft pilots and roofers. From the collection out on garbage trucks, to the processing at transfer stations and recycling centers, to the dumping at landfills, the waste industry averages about one worker fatality a week. Nationally, in 2016, 82 percent of waste-worker deaths occurred in the private sector.

There are two vastly different worlds of garbage in New York City: day and night. By day, 7,200 uniformed municipal workers from the city’s Department of Sanitation go door-to-door, collecting the residential trash. Like postal workers, they tend to follow compact routes. They work eight-hour days with time-and-a-half for overtime and snow removal and double-time for Sundays. With a median base pay of $69,000 plus health care, a pension, almost four weeks of paid vacation and unlimited sick days, the Department of Sanitation workforce is overwhelmingly full time and unionized. It’s also 55 percent white, and 91 percent male.

But come nightfall, an army of private garbage trucks from more than 250 sanitation companies zigzag across town in ad hoc fashion, carting away the trash and recycling from every business — every bodega, restaurant and office building in the five boroughs. Those private carters remove more than half of the city’s total waste.

Mercedes Martinez interviewed by Peter Lamphere - Socialist Worker, January 4, 2018

Months after Hurricane Maria struck Puerto Rico, leading to hundreds of deaths and devastating much of the island's infrastructure, ordinary Puerto Ricans are still struggling to put their lives and communities together--with little help from the U.S. government.

In November, Mercedes Martinez, president of the Federación de Maestros de Puerto Rico (FMPR)--a teachers' union that has organized against school closures and attacks on public education for many years--talked to New York City educator Peter Lamphere about how teachers are continuing the fight to rebuild Puerto Rico and what others can do to help.

In early November, 18 FMPR members were arrested as part of a civil disobedience action demanding the reopening of schools and drawing attention to the threat posed by advocates of neoliberalism--who view the hurricane as an opportunity to privatize public education and further weaken the power of the teachers' union.

By Camille Baker and Lydia McMullen-Laird - The Indypendent, December 27, 2017

When Nilda Sánchez and her children ventured outside after Hurricane Maria waged a direct hit on Puerto Rico, aluminum road signs were crumpled by the highway near their house and trees crisscrossed each other like slain animals in the street. The power and water were off, and remained so for six weeks. It was nearly three months before Sánchez learned whether another of the mainstays in her family’s life would be restored: her son’s education.

Sebastián, Sánchez’s 9-year-old son, had been receiving therapy for his learning disabilities at Instituto Loaiza Cordero, a public school in their San Juan neighborhood. Already the school had been shut down following Hurricane Irma’s sweeping of the island Sept. 6. For the next three months, Sánchez had no word on how much damage the school had sustained in the storms, and no inkling of whether or when it would reopen.

Their hardships multiplied. Sánchez began to worry that Sebastián, who suffers from developmental delays in hand-eye coordination and attention deficit hyperactivity disorder, was regressing without therapy and the routine of school. Child support payments from Sánchez’s ex-husband — whom she left, she said, after he became abusive toward her — stopped coming, slipping through the cracks of administrative upheaval. Without anywhere else to be, Sebastián had to accompany Sánchez to the few job interviews she could find in the hurricane’s wake.

Sánchez says Hurricane Maria opened her eyes to the “cruelty” of living in bureaucratic limbo.

By Roberto Barreto - Socialist Worker, December 20, 2017

CORPORATIONS ARE making out like bandits from hurricane recovery efforts in Puerto Rico. The wheeling and dealing behind the scenes is enriching the few, to the tune of millions of dollars in government contracts, at the expense of the many on the island.

The vultures are making off with millions in contracts that include inflated rates of pay, which were agreed upon through a highly suspect and corrupt process. The elites are also trying to get away with privatizing the few public services that we have left.

But these aren't even the worst aspects of the whole contracting process in Puerto Rico today. The main problem with these deals and government-awarded contracts is that they hold back desperately needed reconstruction efforts at every step of the way. The politicians and business people are squandering time and resources while Puerto Rico continues to reel.