Advantages for Privatisation of Public Services
Benefits of the private sector providing public services like the NHS
- Increased Demands being placed on the public sector due to demographic changes. If more people went private this would enable the NHS to have shorter waiting lists
- Provides consumers with more choice.
- If less people use the NHS it would enable the govt to lower taxes and reduce borrowing
- Private Sector has profit incentive to cut costs and provide a more efficient service. E.G public bodies may have over staffing because of political fears about job cuts
- Diseconomies of Scale in the NHS
Problems of Privatising Public Services
- Private Sector may cut costs by reducing quality of service, e.g employing less cleaners will lead to dirtier hospitals
- May increase inequality
- Health is a merit Good and will be underprovided in a free market
Essays and Revision Notes on Government Failure
- Government Failure
- Privatisation of Public Services
- Should We Pay for NHS?
- Rationing and the NHS
- Why Government Intervention ?
- Market Failure
- Buffer Stocks
see also:
- Privatisation
- Arguments for Privatisation
- Privatisation and NHS at Socialist Health
- Nurses warn on NHS Privatisation at BBC
Fast Delivery By Email!
