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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 goods and services. A public organization would not be as productive because of the limits of the government¡¯s budget. In contrast, the professor casts doubt because over the long-term it is likely to be a loss. He provides an example of Chicago toll booth to support the doubt.
The reading claims that private businesses tend to consistently monitor the infrastructure they worked on to keep it in good condition, whereas the government would not be as efficient since the government has many other issues to deal with. Nevertheless, the professor refutes the idea because private business is not interested in maintenance of public goods and services. He offers an example of revoking license to a water corporation.
The reading points out that the private business is likely to introduce new technology while the government will not. As advanced technologies are incorporated in public services, both private business and the state benefit since improved public service will attract more people and bring greater tax revenue. On the other hand, the professor challenges the idea because private sector does not tend to be motivated to improve the quality of their services and adopt advanced technologies without competition.
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