Study Points To Privatization Success Stories In Missouri

The Show-Me Institute's office in St. Louis' Central West End | Photo courtesy of the Show-Me Institute
The Show-Me Institute's office in St. Louis' Central West End | Photo courtesy of the Show-Me Institute

A study on privatization of government services in Missouri outlined success stories and said inertia is the biggest obstacle to privatization, while opposition also comes from public-sector employees concerned about job security and pay.

David Stokes reviewed dozens of examples of privatized services in Missouri for the Show-Me Institute. St. Louis County once ran its own pharmacy for low-income residents; outsourcing cut costs by a third and made the service more convenient.

In Kansas City, private trash haulers serve about two-thirds of residents at a per-household price that’s 30 percent below what it costs to have city employees provide the same service in some neighborhoods.

The Show-Me Institute and Stokes are unabashedly pro-free-enterprise, but he says ideology doesn’t usually drive privatization decisions. In the study, Stokes names several entities that he thinks could be successfully turned over to private operators, including Springfield’s utilities and the St. Louis water division.

Read more from the St. Louis Post-Dispatch


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