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View Diary: So why do hedge funds so favor charter schools? (115 comments)

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  •  that is because profit is skimmed off the top (6+ / 0-)

    before anything is spent on actual services and that skim is anywhere from 5%-25%

    •  Part of the problem is that the government does (0+ / 0-)

      know how to negotiate, they seem to do a poor job managing these companies, they need to take lessons from people like WalMart, you want to play with them you make a VERY SMALL margin but they are the only game in town but so is the government.

      •  problem is officials are rewarded personally (1+ / 0-)
        Recommended by:

        for negotiating badly.  In private business they would be fired but in government they are reelected

        •  Public unions have the same impact (0+ / 0-)

          Politicians get re-elected based on public union support or non-support. It's similar to privatized corporations. In all cases, people who have something to gain from the government will lobby it.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Fri Feb 15, 2013 at 11:19:03 AM PST

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      •  That's just not true. (3+ / 0-)

        The government cannot take lessons from for-profit companies.  The whole idea of government running like a business is pure bullshit.  

        Wal-Mart et al, unlike the government, and after pushing out all competition in an area, abuses it's employees, barely gives them enough hours to make enough money to live on, pushes them onto medicaid (so you and I pay for their healthcare which is usually in the ER making it the most expensive) and take huge profits.  

        Corporations, public or private have one reason to be, to make money.  Government should never be in the profit business, after all it's taxpayers money.  IF there were a profit it should be returned to taxpayers.

        They myth of poor management by government was propagated by the private sector in the efforts to privatize government.  Almost universally, where government has been privatized, the people end up paying more for less. ff

        Not to mention that quality suffers, too.  Got to make a profit (and legally obligated to pursue profit if you're a public companies with shareholders) so you cut corners, lay-off workers, uses cheaper materials (not the same quality materials at a lesser price).

        I'd love to see one former government run public utility that was privatized that didn't run better and cost less before it was privatized.  Just one.

        The priest said, "Today's sermon is called 'Liars', but first I have a question. How many of you have read Chapter 66 in Matthew?" Nearly every hand went up. "You're just the group I need to speak to," the priest said. "There's no such chapter."

        by Back In Blue on Fri Feb 15, 2013 at 09:30:22 AM PST

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        •  The problem is that we negotiate badly with (0+ / 0-)

          private utilities, that is why this doesn't work.  The Germans have an insurance industry that works because they are tough negotiators and regulators.  We have neither in our government officials.  We have all the power in the world to make these private utilities do what they should do and we just don't.

          •  No, it isn't. (0+ / 0-)

            Your assuming some level of incompetence yet you provide no examples.

            I was referring to electric utilities as an example.  If you're going to talk about insurance I'm assuming you're talking about health care insurance.  Medicare does an awesome job of negotiating with providers, has THE LOWEST  overhead (even the most conservative number put it at less than half that of private insurance) and the HIGHEST user satisfaction.  IF the Bush admin didn't prohibit Medicare from negotiating with pharmaceuticals companies it would be even better and PART D (Donut hole and all) would never have been invented.  If we had Medicare for all with options for alternative or supplemental private insurance, we'd almost be like Germany.

            Germany's health care system (and culture by the way) is nothing like our current system.  But if you want to compare it to Medicare, I don't think there's much difference in the effectiveness of their negotiators vs. ours.   If we had Medicare for all we wouldn't even be bringing up health care as an issue.

            The priest said, "Today's sermon is called 'Liars', but first I have a question. How many of you have read Chapter 66 in Matthew?" Nearly every hand went up. "You're just the group I need to speak to," the priest said. "There's no such chapter."

            by Back In Blue on Sat Feb 16, 2013 at 07:22:39 PM PST

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            •  I will give you an example and it is at the state (0+ / 0-)

              level and not at the federal level.  Our power in WA state comes from private companies,  our infrastructure is horrible, horrible.  We have had major power outage across large urban areas because of the annual predictable wind storms.  Upon investigation, I found out that our power companies did not have teams to respond to local emergencies so that the minimum time we were looking at was at least 3 days without power(the time it takes to get out of area teams in place) and longer for a good portion of the population further away from critical infrastructures(hospitals and large area mall).  In addition, the government had allowed the power company to negotiate their maintainence responsibility down to nothing.  They only need to maintain the trees threatening key power lines every six years, that is no maintainence at all.  The diseased trees would blow down first in the large storms that buffet the area annually.  If you look at Sandy and other disasters, you will see the same things so to clarify, I do not speak of the federal government but we have seen it there as well(Katrina).  I could go through a list of things that if the government had negotiated differently, we would have a better power infrastructure.  

              •  Sorry, but you're still thinking this is something (0+ / 0-)

                that government inherently cannot do and that private business can.

                FEMA is a perfect example.  I lived in NYC during 9/11 (two blocks from the WTC).  FEMA was awesome!  They provided info, money, and other benefits depending on need.  All I had to do was call the hotline, make an appointment to meet them at one of their on-the-street- locations (mine was at the main post office at 33rd and 8th Ave (behind Madison Square Garden), show him my ID and he took care of my claim with an electronic pad (similar to what FedEx and UPS use only better) and I left with the info, his direct phone number, and a check!  

                Why is that? Because FEMA was run by people who knew what they were doing because Clinton's appointees were still there.  In January of 2003 Brownie was put in place by Bush with the intention (and philosophical belief) that FEMA shouldn't be something people can count on.  They wanted it to do less for victims and more for business interests after a disaster.

                The point is, FEMA ran incredibly well when it was the intent of the administration in charge for it to be run well.  When the administration in charge sees government as the problem and wants it to be smaller and do less, you get FEMA under during Katrina.

                It has NOTHING to do with public or private. It has everything to do with who is in charge and their agenda.  As for Sandy, yeah, I still live in the area (CT) and Sandy was the third time in 15 months that we lost power for more than 5 days.  Connecticut Light and Power is our distributor and they suck in many ways.  However, even though Sandy was much worse in NJ and NY, it was still worse than the two previous storms in CT had been, but the response was dramatically better.

                Why is that?  Because our local politicians of all parties ripped CL-P a new one and our democratic governor did as well. We had out-of-town crews in a day and a half because CL-P had to make a whole new plan and made deals with out-of-town crews to ensure a better response time.  NY and NJ hadn't felt the pain of the previous two storms and had no plans in place that could deal with that nightmare.  They were incredibly lucky that Obama decided to make sure they got the help they did get, but it still could have been much better.  It was however, no Katrina.  

                The priest said, "Today's sermon is called 'Liars', but first I have a question. How many of you have read Chapter 66 in Matthew?" Nearly every hand went up. "You're just the group I need to speak to," the priest said. "There's no such chapter."

                by Back In Blue on Tue Feb 19, 2013 at 06:14:31 PM PST

                [ Parent ]

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