Friday, June 22, 2012

The magic of markets

Paul Krugman has a very interesting piece about the privatization of prisons:
But if you think about it even for a minute, you realize that the one thing the companies that make up the prison-industrial complex — companies like Community Education or the private-prison giant Corrections Corporation of America — are definitely not doing is competing in a free market. They are, instead, living off government contracts. There isn't any market here, and there is, therefore, no reason to expect any magical gains in efficiency.
The whole piece is worth pondering.

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