Privatization of assets leads to downgrade of credit ratings, and makes the government raise taxes.

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Memo to Congress: Show Us the M-O-N-E-Y! (Part 2 of 3)

February 15th, 2011

Geraldine Perry

Like the Fed, states and local governments appear to be between a rock and a hard place, and like the Fed’s QE2 program now aimed at Main Street, solutions for state and local governments have been so far less than palatable. One such solution known as “infrastructure privatization” has been rapidly gaining momentum in recent years and involves the sale and/or lease of public assets to private interests. These assets include such things as airports, parking meters and parking garages, public water and utility systems, toll roads and bridges, sea ports, zoos and other outdoor spaces, and more – all originally built by taxpayers and paid for with taxpayer monies.

Metered municipal street and garage parking spaces are among the most popular of recent municipal privatization schemes with one of the first taking…

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