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Privatization of Public Services Ultimately Causes More Burden on Consumers.

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Privatization of public services ultimately causes increased financial burden on consumers in more ways than one. 

Recent trends in privatization of petroleum companies have given rise to an increase in ownership by foreign investors and management making decisions to redirect investment spending to overseas markets resulting in shifts in labor force to the detriment of U.S. workers and an increase in unemployment. 

Privatization of public services related to petroleum, electricity, and coal has also encouraged development of more multinational and cross-dimensional energy companies, a situation which could cause monopolization and/or price fixing in the market. 

As the corporations get larger and break up into smaller units of business in order to manage their differing products, it would be much easier to disguise a monopolization of a market because the corporate ownership would have to be investigated in order to expose the truth in that instance. 

Traditional petroleum companies are ever increasingly branching out to include electric power, as well as incorporating the electric and natural gas industries. 

Since there have already been many past instances of monopolization of trade within the petroleum industry through the use of multiple corporate identities attached to one corporate individual or group, it is likely a similar situation can and will occur now that the energy market has become a worldwide and multi-industry opportunity to create greater corporate wealth. 

Although the need to invest great amounts of capital to establish the infrastructure of new energy transmission facilities in developing countries is a positive reason to allow foreign private investment in energy companies, it also opens the door for companies that are already well established and producing great profits to create an increased consumer base and profit through expansion. 

Initially, from an accounting perspective, it would create the appearance of increased corporate debt for the mother company; however, that would only be a short-lived situation until development of the expansion was completed at which time the company would begin to reflect a great profit on its books.

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Corporate Fraud

One could see where this situation could lead to a similar financial crisis as is being reflected in the banking industry currently, as if the debt for development were assessed to the books of an American company, but the profit ultimately was assessed to the books of a foreign company operating as a subsidiary company, it could create an inaccurate perception of bankruptcy status on the American market. 

This would essentially be a fraudulent perception of the bigger accounting picture, but could effect the stock price and company stability on a national level causing American investors to potentially lose money and foreign investors to profit from that situation. 

Or, in order to compensate the American company, rates for American consumers could increase to cover the cost of foreign development, which would not be fair or just at all. 

In fact, that would be raping the American consumer and causing them to pay for a service they do not utilize, which is also fraudulent business practice. 

Globalized privatization of sources of energy could result in shifts of huge amounts of capital to foreign markets, a situation which could cause either a great increase or great decrease in any given country’s energy revenues, as well as affecting import and export levels for different countries shifting the balance of debt for an entire nation. 

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Privatization of Public Services Scam

Privatization of public services in some foreign countries has already created situations for consumers where they cannot afford to pay the increased prices to sustain the services, as the rates for consumption have increased but their incomes have not. 

This has created crisis situations in some areas where humanitarian issues come heavily into play, but the corporate entity is not always concerned about the burden on the end user. 

In fact, it is more often than not that the end user is the one being exploited to the financial betterment of the corporate entity.

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