In this year, there has been a great deal of controversy over the nationalized assets that the government acquired in late 2008 as well as the assets of the American Government that have now seem to have outlived their usefulness and are becoming a lead anchor to public fiscal health. From General Motors to the Postal Service, people are now scrutinizing the central government for places to cut the financial burden of we the people and many say this is one way to do so. Many governments around the world have privatized their public assets in telecommunications, public utilities and postal services over the years. Individuals who desire smaller government will begin to clamor for the denationalization and divestiture of these recently acquired companies and agencies. Now is the time to discuss this idea of the government getting out of the business of business.
The government should consider that instead of full or majority ownership of companies, it should take a small stake in the company as the farthest reach of government into the realm of enterprise. In sectors of serious public interest, the government can take a 30-35 percent stake in areas of the economy that are either quasi or fully nationalized. If the government were to conduct such a privatization of Amtrack, the citizens of this country will see high-speed rail at a faster rate than ever could be achieved under the current government plan. Furthermore, a privatization of the postal system could improve the speed of parcels and letters possibly even faster than other carriers. Considering the Japanese have done this successfully with their rail system and the Germans have done the same with their postal system since the late eighties and with no real ill results. The only other change will be the government taking its share of the financial corporations it has and break them off to create within the newly privatized postal service (AmeriPost, as a hypothetical name for the new company) a postal savings bank similar to others around the world including New Zealand’s KiwiBank, which was created to stimulate savings in the same way economists are recommending for this country’s long-term liquidity.
This system has the added benefit of dividends being delivered when the private share of investment produces exceptional results. These dividends being delivered to the government can be used to pay off debt and balance budgets as well as make the conditions right for tax cuts that will increase collected revenue. This will improve our public finances and improve those public interests. This is a simple solution to the complex problem of macroeconomic relations between the state and the market and allow both to profit accordingly.