The privatization movement and the deregulation movement have turned out to be failures.
Privatization in Britain under the Thatcher government had its origin in the belief that the absence of incentivized managers and shareholders with a stake in the bottom line resulted in nationalized companies operating inefficiently, with their losses covered by government like the big private banks’ losses today. Thatcher’s government believed that privatizing socialized firms would reduce the UK budget deficit and take pressure off the British pound.
Today privatization is a way that governments can reward cronies by giving them valuable public resources for a low price. When the UK government privatized the postal system, there were news reports that one postal property in London alone was worth the purchase price of the entire postal service.
Privatization is also a way that conservatives, who object to social pensions and national health, can stop “taxpayer support of welfare.” In the US conservatives want to privatize Social Security and Medicare. In the UK conservatives want to privatize the National Health System.