Good Recession News: Privatizing Parks and Roads

As most people know all across America there are many nature areas that are owned by the state and federal government. This along with almost all roads are owned by the government. As I have mentioned before during a recession people usually turn their back on Capitalism. There are some benefits of recessions and in this case it is that the governments of many states are losing revenue. This is because as productivity goes up so does governmen revenue. Since states cannot issue their own currency and inflation/steal from people, they must find another way to raise revenue. This from The USA Today:

“Like families pawning the silver to get through a tight spot, states such as Minnesota, New York, Massachusetts and Illinois are thinking of selling or leasing toll roads, parks, lotteries and other assets to raise desperately needed cash.

Minnesota Gov. Tim Pawlenty has hinted that his January budget proposal will include proposals to privatize some of what the state owns or does. The Republican is looking for cash to help close a $5.27 billion deficit without raising taxes.

GOP lawmakers are pushing to privatize the Minneapolis-St. Paul International Airport and the state lottery. Both steps require a higher authority — federal legislation in the case of the airport, a voter-approved constitutional amendment for the lottery. But one lawmaker estimated an airport deal could bring in at least $2.5 billion, and the lottery $500 million.

Massachusetts lawmakers are considering putting the Massachusetts Turnpike in private hands. That could bring in upfront money to help with a $1.4 billion deficit, while also saving on highway operating costs.

In New York, Democratic Gov. David Paterson appointed a commission to look into leasing state assets, including the Tappan Zee Bridge north of New York City, the lottery, golf courses, toll roads, parks and beaches. Recommendations are expected next month.”

This is great. It would be nice if banks and private individuals were able to own some of these assets. First, this wold allow banks to not weigh so heavily on the mortgage industry. Second, these airports and roads will be run more efficiently. This is a benefit to everyone and most people would agree that many of these things shouldn’t be run by the government. The federal government should take a look at what the states are doing. They are too busy trying to “Save Capitalism.” Anyone who says that is a Socialist. The point of Capitalism is the invisible hand not the bureaucratic hand.

It is definitely an interesting shift with the federal government socializing banks and car companies while states are auctioning assets. It could be must worse and at least us Capitalist are getting something out of this.

The rest is here.


Published in: on December 28, 2008 at 1:11 am  Comments (1)  
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