Privatisation circle jerk

Let us imagine that the government privatises a given function that used to be its sole preserve. This creates an industry that never existed before.

In order to compete in this industry competitors for the business need to raise capital.

In order to raise capital the competitors need to ensure either the banks or the capital markets that there is sufficient potential for growth in the marketplace to justify the investment.

Ergo the competitors spend some of the income gained from the government privatisation to lobby the government to increase spending in their chosen area. (Note - it is especially useful in this arena if these business can play on a public fear of imminent danger that politicians can use to justify their votes which are actually based on dinners and junkets paid for.)

The government increases spending based on the carefully manipulated public outcry.

The increase in spending creates a need for competitors for the business to raise more capital.

The need to raise capital.....

Ad nauseum.

So is anyone surprised that prison numbers are soaring and government spending on incarceration is spiralling out of control?