In my latest Free Market Minute I discuss an issue particularly dear to the hearts of local government folks here at JLF. As reported in the (8/23/2010) Wall Street Journal, cities across the country are selling off or leasing to private concerns their convention centers, sports complexes, parking facilities, etc., in order to relieve fiscal deficits and raise revenues.
Recent experience shows that private entrepreneurs typically run these services more efficiently (turning losses to profits in many cases), and typically have the good sense not to build municipal facilities at all if they are not warranted by consumer demand, rather than civic fathers’ egos. Moreover, market-driven entrepreneurs know when to fold ’em if things just don’t pan out. That’s assuming there are no foolish but accommodating local bailouts to keep them afloat. The only good news there is that communities are too broke and too overcommited, fiscally, to continue to fund foolishness. Thus they are turning to the private market to turn failures around, or to liquidate as needed. For more on this and other issues, see JLF’s recently-released Agenda 2010, our shopping list for freedom-enhancing options across the policy spectrum.
