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10.22.2007 3:15 pm

Scholar urges Kirkwood to privatize

St. Louis Post-Dispatch

The Show-Me Institute, a conservative think tank in Clayton, has focused most of its attention on statewide issues like health care,  education and eminent domain. But it’s also interested in micro-level economic issues, as a new commentary on Kirkwood’s utilities indicates.

Show-Me policy analyst David Stokes points out that, as the only city in St. Louis County with its own electric and water utilities, Kirkwood is passing up a windfall like the $14.5 million Florissant got from selling its water system in 2002. There is a plus for city residents — they pay the same price for electricity that AmerenUE customers pay, but the profits go into city coffers rather than to utility shareholders.

Stokes concludes with a lukewarm argument for privatization. He urges the city to sell the utilities and focus on services that aren’t provided by private companies, such as police and fire protection. But, he acknowledges:

Aside from the one-time profit, however, the immediate, quantifiable savings to residents from the sale would be minimal.

 

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4 comments

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Thanks for letting readers know that the Show-Me Institute is a “conservative” think tank. It wouldn’t have hurt to let folks know that Rex Sinquefield, a rich hard right Republican, is the main funding source for the far right wing think tank. I like Naomi Klein’s definition of a “think tank”(paraphrasing here): made up of shills for the rich and paid to think by the makers of tanks. Privatizing public resources is a step back to the Gilded Age, the age of Robber Barons. Maybe Milton Friedman and Ayn Rand, and their “free”-market devotees would like this, but the vast majority would not. Only the super-rich want us to go back to having less fortunate old and disabled people selling apples on the street corner to make ends meet, as was the case was unbridled capitalism was in power in our beloved country. Read John Bogle and Naomi Klein if you want to add some diversity to your information sources. Thank you.

— whiterosesociety
8:02 am October 23rd, 2007

To Mary Jo Feldstein: this is on the topic of privatization also, but refers to your column today(10-24-07) about Medicare privatization. I think it was unfair and unbalanced for you to point out the “political agenda” of those who are against Medicare privatization while failing to point out the “political(and I might add, economic)agenda” of those who want to privatize Medicare. I hope this was but another oversight, but I do detect a tendency in the P-D Business Section to favor Milton Friedman and his so-called “free”-market theories. When his devotees speak of “freedom”(in the market place), I am reminded of a famous statement(the attribution of which escapes me at present)that the rich and poor are equally free to sleep under bridges. Wake up, America!

— whiterosesociety
10:53 am October 24th, 2007

Hello. Thanks for writing in. I think the debate over whether private businesses can more effectively run government programs is an interesting one and I look forward to writing about it in a future column. However, this column takes no stand on the issue and only points out the benefits of and concerns over Medicare Advantage plans.

— Mary Jo Feldstein
12:09 pm October 24th, 2007

Thanks for writing back, Ms. Feldstein. I think you miss my main point: describing those who are against privatizing Medicare as having a “political agenda” implies the lack of one in those who favor it. I also believe that you have a right to have a slanted opinion, but should then label your column as “commentary” so readers can decide for themselves. Thank you.

To David: Live Chat ended before I could respond to the bit about the Progressive Policy Institute. Despite its name, this “think tank” is described by some as being conservative, neoliberal, etc. I am truly chagrined that the P-D and its staff do not take better care to identify the political/economic background of the “think tanks.” This is either intentionally misleading or at least uninformative. I like Naomi Klein’s defintion(paraphrasing here) of “think tanks”–composed of people who paid to think by the makers of tanks! Thanks again.

— whiterosesociety
1:16 pm October 24th, 2007