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privatize only what…

Over at they are talking about how bad Bush the Lesser has made the air traffic control system. One of the many “wonderful” ideas was privatization.

In the argument about bigger government and private enterprise, people miss the key points.

privatize only what you can afford to fail

Private enterprise is all about enabling people to take risks (and potentially failing) in return for a higher reward.

90% of new businesses fail. Usually in the first year. Can the US afford that kind of failure rate at “private” Air Traffic Control centers?

If not, then the US will be forced to subsidize the “private” ATCs that would otherwise suffer normal business failings.

Privatize only where you can afford to allow favoritism

Being successful is all about picking the businesses target audience and only serving those customers. A auto mechanic may decide to specialize in just BMWs. Can we afford to have an air traffic control system that specializes in just Boeing aircraft and does not handle flights using Airbus equipment?

Posted in political, starting a company, transportation.

One Response

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  1. Dennis Yu says

    You also cannot privatize where there is only one provider. It’s not like 5 fast food restaurants on the same block. An alternative to government-owned is government regulated ATC’s– put in minimum capital and certification requirements. Done right, you can perhaps have the best of both worlds.

    Also, off topic, but would you like a custom WordPress skin? You’ve got the default blue and we can make a quick one for you.

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