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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 the 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.
The reading passage asserts the idea that infrastructure privatization increases profits for the state since private companies have a great incentive to produce better good 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 it is a loss. Professor proves an example of Chicago toll booth.
The reading claims 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 private company does not have any interest in maintaining the services. The professor provides an example of a water corporation whose ownership was revoked by the government because it focused on gaining the profit in a short amount of time instead of its quality.
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 the private company provides better services only in competitive environment. As a result, if the competition is absent, there will be no need for the private company to introduce new technology.
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