Since the election of Ronald Reagan in 1980 it has been the dream of Republicans to turn government over to private enterprise believing that it would somehow make government more efficient. What might the consequences be if such a shift were to take
place?
The Interstate highway system was created by The Federal-Aid Highway Act of 1956 which being a Cold War era project it had duel purposes. One was to provide a means of travel for the average citizen along with a more efficient interstate commerce delivery system. It was also meant as addition to the nations defense. while large parts of the system east of the Mississippi consists of toll roads whose usage fees are quite low. While those portions built in the Western U.S. are toll free. If the Republicans were able to privatize the whole system what would the economic fallout be for the average citizen? Consider this. Japan has some of the highest toll road rates in the world and they would be higher still if the government didn’t continue to Subsidize the system. A trip taking less than 3 hours will cost you about $100. Given that a corporation would want to maximize its profits one can only imagine how they might calculate the fees to be charged: Vehicle length, Vehicle weight, Number of passengers and distance traveled. Who would maintain the system and where would those funds come from? Given the G.O.P’s hatred of taxes would Americans be absolved from gasoline and vehicle excise taxes or would there be a large amount of corporate welfare involved?
Entering the 1930’s large portions of America where without electricity because private utility companies saw no profit in providing such a service to rural America. When Franklin D. Roosevelt won the 1932 Presidential election the Great Depression was more than four years old it was his intention to bring America out of the Depression through various government programs one such program was known as Rural Electrification which came into being in 1935. Without this program how long would it have taken all of America to placed on the electrical grid? Does anyone believe that left to their own devises private utilities would have sought to provide service to such places as Montana or Idaho. As long as the government had maintained public regulation of these utilities in conjunction with the Tennessee Vally Authority and the Bonneville Power Administration providing the needed electricity that economically depressed rural areas of the country needed they would have remained economically disadvantaged without such programs. Yet, knowing the consequences of deregulation the California State Assembly did just that when it voted to deregulate electric utilities within that state. Why was it done? Profit pure and simple. The net effect was a tremendous rise in eclectic rates followed by those now infamous rolling blackouts. If the electrical grid within the United States is completely deregulated as Republicans hope what would the consequences be?
Once the rural electrical infrastructure became antiquated would any private utility step in to repair or replace any part of the electrical grid? Probably not as they would evaluate such repairs as not cost effective. For some living in urban areas deregulation and privatization would be just as disastrous. Why? For those living at or below the poverty line any rate hikes would further strain their economic situation. The net effect would be states, counties and cities having to deal with a situation for which they are not equipped providing reduced or subsidised utility rates to a large segment of there population.
These are only two examples. But the economic and social consequences wouldn’t be felt just by the economically disadvantaged. All social and economic classes would be effected excluding the top 1% of all income earners. In the hypothetical one might equate it with the Robber Barons of 19th century America or with the economic and class system of Europe but the out come would be the same with large portions of the population no longer able to economically sustain themselves.