G4S shares plunged as police were drafted in to guard the Olympics amid warnings more soldiers will be needed. Yet another outsourcing company collects profits when all goes well and the state picks up the pieces if the company fails.
Some are – but there is no evidence that siphoning profits into private companies is any panacea. One thing is certain. These contracts create moral hazard on a grand scale, where profits are private but losses are ours.
G4S is, as they should be, coughing up the cash for those soldiers and policemen.
In what manner are the losses \”ours\”?