When “privatization” just means transferring the state’s coercion and use of taxes to private companies, it’s not a reduction in statism. Instead, it builds up perverse incentives and makes the state less transparent. This can be seen quite clearly in the case of the for-profit prison industry. It turns out that while for-profit prisons still receive our tax dollars and still lock peaceful people in cages, they’re not subject to Freedom of Information Act requests.
And while we’re on the subject, profiting from caging humans isn’t just for the prison operators. An excellent report released this week documents how Wells Fargo is getting in on the authoritarian action.
I believe it was Noam Chomsky that argued that large private conglomerates are set up essentially like military dictatorships. I tend to agree with this assessment. Similar top down structure, similar hero worship of the top brass, brash propaganda systems, etc. As government in the U.S. continues to slide into police state territory, we will likely see more partnerships between these private and public tyrants.
Hence, making any attempt to distinguish between either the state or corporations a matter of splitting hairs.
I realise that "caging humans" is supposed to have negative connotations, but frankly I have no objection to humans being caged if they murder, rape, steal etc. How exactly would a private prison system operate in a stateless society? Presumably there would have to be some sort of mechanism for containing dangerous persons.
This isn't a simple matter. The broader question is how a free society would deal with crime, and it may not always involve prisons at all!