How Privatization Increases Inequality

This report outlines the ways in which the privatization of public goods and services has harmed working-class communities and communities of color. Analysis from In The Public Interest identifies five ways mechanisms of privatization that disproportionately hurt poor individuals and families: the creation of user fees, increasing existing user fees, privatization of the social safety net, decreased wages and benefits, and increased socioeconomic and racial segregation. Recommendations for counteracting these impacts include investing in public goods, accurately accounting for the social and economic impacts of privatization, ensuring that government contracts promote shared economic prosperity, and increased transparency.