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From: Larry Kazdan
To: Toronto Star <lettertoed@thestar.ca>
Cc: bcsmith@thestar.ca
Subject: Re: Liberals� drive to privatize Canadian airports lifts off, Bruce Campion-Smith, March 6, 2017
- https://www.thestar.com/news/canada/2017/03/06/liberals-drive-to-privatize-canadian-airports-lifts-off.html
- Classical economists wanted to free industrial capitalism from surviving feudal privileges that obstructed commerce and let absentee landlords grow rich in their sleep. As a way to prevent price gouging, European governments kept the most important natural monopolies in the public domain and provided basic infrastructure either at cost, at subsidized prices, or freely in the case of roads. The guiding principle was to keep household and business expenses low.
- Unfortunately the Liberals are proposing to turn airports over to private hands, and to use the new Canadian Infrastructure Bank not to keep user fees down, but to provide attractive profits for private and foreign capital. Under the Liberal neo-feudal plan, toll-booths will spring up everywhere. Business barons will exact a steady stream of charges which we the mere peasants and tradespeople will pay every time we budge.
- Footnotes:
- 1. Michael Hudson is Professor of Economics at the University of Missouri, Kansas City and author The Bubble and Beyond (2012).
- http://www.counterpunch.org/2015/10/05/parasites-in-the-body-economic-the-disasters-of-neoliberalism/
- "The objective of the classical economists was to bring prices in line with value to prevent a free ride, to prevent monopolies, to prevent an absentee landlord class so as to free society from the legacy of feudalism .....
- ***
- To prevent such price gouging...., Europeans kept the most important natural monopolies in the public domain: the post office, the BBC and other state broadcasting companies, roads and basic transportation, as well as early national airlines. European governments prevented monopoly rent by providing basic infrastructure services at cost, or even at subsidized prices or freely in the case of roads. The guiding idea is for public infrastructure � which you should think of as a factor of production along with labor and capital � was to lower the cost of living and doing business."
- 2. William Mitchell, Professor in Economics and Director of the Centre of Full Employment and Equity, University of Newcastle, NSW, Australia http://bilbo.economicoutlook.net/blog/?p=29872
- "Privatisation, franchising, outsourcing, PPPs, PFIs, and all the rest of the devious transfers of public wealth and funds to the private sector have systematically failed to deliver on the promises made by the consultants.
- The stockbroking and legal companies and economists who advised governments in these public robberies have all done very well.
- Many private firms have done very well - enjoying the best of both worlds - a captive infrastructure, ability to gouge consumers via excessive fares, no real need to keep the quality of service up to acceptable standards, and increasing public subsidies."
- "Privatisation, franchising, outsourcing, PPPs, PFIs, and all the rest of the devious transfers of public wealth and funds to the private sector have systematically failed to deliver on the promises made by the consultants.
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