This from the International Herald Tribune:
“SYDNEY: The global credit crisis has claimed an unlikely victim in Australia with the fall of the world’s largest child care company, leaving thousands of parents to wonder who will look after their children and raising questions about whether community services should be left to the marketplace.
The company, ABC Learning Centers, was placed in the hands of administrators on Nov. 6 when it revealed that it could no longer repay more than 1 billion Australian dollars, or $650 million, racked up during a debt-fueled expansion into the United States and Britain.”
It seems that it doesn’t matter what fails, people are going to try and nationalize it. Child care facilities are not a right and a hundred years ago did not exist. This person claims that the market created a monopoly and raised the prices because one company took a large market share:
“What was held out to the Australian public was that the market would bring choice, competition, higher quality and lower prices, and in fact it did none of those things,” Brennan said. “There’s never been another decade where the price of child care has increased so rapidly.”
This does not take in account anything else. The article goes on and on about debt and how they cannot repay it. If they were a true monopoly that was making huge profits this would not be a problem. So now the government is thinking about nationalizing it, which will probably cause great debt for the government. The ironic part is that Australia is going to become a literal nanny state.
The rest is here.
~PCCapitalist
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