Implications of Privatization
The privatization in Israel consists of ideological problems. The ruling between neo-liberal perceptions or social democratic welfare state perceptions, which are both opposite economic and social perceptions.
Arguments in favor of privatization:
- Reducing government spending
- Promoting competition
- Maintaining a strong economy
- Increasing efficiency and making services cheaper.
The supporters of privatization in Israel claim that reducing the state's involvement increases the involvement of individuals. Thus, promoting competition, encouraging investment, having a strong economy and reducing the state expenses - which would lead to cheaper services.
Arguments against privatization:
- The transferring of the capital monopoly into the hands of a small group of wealthy private owners.
- It would harm the employees.
- It would harm the effectiveness.
- Losses of the government.
- It doesn't always necessarily increase efficiency
- Making the manpower cheaper and reducing it.
- It would harm the recipients of the services.
The opponents of privatization in Israel argue that companies would also be able to be effective under government ownership. Privatization affects employees and leads to the dischargment of employs, leads the workers to choose to get early pension and salary cutbacks. The Israeli economy is gradually becoming controlled by a small number of rich families. The privatization of public services affects the public and especially the poor population, which are the main consumers. One of the main goals of the state is to take care of its citizens, people’s security, people’s education, to the profitability and to the preservation of the social community. A state which disclaims those responsibilities violates its own principles.
The method which has become customary in Israel in the last decades is selling the control of the public assets into the hands of capital owners, while other countries rather choose to issue the company shares to the public and company employees.
Read more about this topic: Privatization In Israel
Famous quotes containing the words implications of and/or implications:
“The power to guess the unseen from the seen, to trace the implications of things, to judge the whole piece by the pattern, the condition of feeling life in general so completely that you are well on your way to knowing any particular corner of it—this cluster of gifts may almost be said to constitute experience.”
—Henry James (1843–1916)
“Philosophical questions are not by their nature insoluble. They are, indeed, radically different from scientific questions, because they concern the implications and other interrelations of ideas, not the order of physical events; their answers are interpretations instead of factual reports, and their function is to increase not our knowledge of nature, but our understanding of what we know.”
—Susanne K. Langer (1895–1985)