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In the given set of materials, the reading passage and the lecture deal with privatization to debate whether infrastructure privatization benefits both state and the private business. The reading passage is providing three pieces of evidence to prove its point, whereas the lecturer argues against it by providing three compelling rebuttals.
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The reading passage asserts the idea that infrastructure privatization increases profits for the state since private companies have a great incentive to produce better goods and services. A public organization, however, would not be as productive because of the limits of the government¡¯s budget. The professor casts doubt because over the long-term privatization is a loss. The professor provides an example of Chicago toll booth.
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The reading claims that another reason privatization is advantageous is that private businesses tend to consistently monitor the infrastructure they worked on. On the other hand, if the government were in charge of monitoring, it would not be as efficient since the government has many other issues to deal with. The professor refutes the idea because the state does not have interest in maintaining the service. He provides an example of revoking license to a water corporation.
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The reading points out that the private business is likely to introduce new technology while the government will not. As better technologies are incorporated in public services, both private business and the state benefit since improved public service will again, attract more people, which results in even greater tax revenue. The professor challenges the idea because private businesses provide better service in a competitive environment. When competition is absent, companies do not have the reason to introduce new technology.
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