Could we all please remember that when the city hires a private contractor, we are not just paying the workers? We also pay shareholder profits and other costs associated with private businesses (higher borrowing rates, risk premiums, contract oversight costs, etc.)
The only apples-to-apples comparison is total cost to the taxpayer, not just the labour cost.
Well, of course. I don't support outsourcing merely as a matter of principle. But only as a matter of cost savings. I wouldn't support outsourcing a job that did not meet a set quality standard at an appreciable cost savings.
However, if a contractor can provide a service the same service and reduce outlays by 10%, while meeting service standards, then I see absolutely no reason to worry about who profits. If you can make a profit by doing something cheaper than the competition -- in this case, public sector municipal workers -- then all the power to you.
I for one, have absolutely no moral or ethical qualms with the concept of a private enterprise making a profit from activities it performs for a government customer, as long as the manner in which that enterprise obtained its tender for services was done in a open, transparent and fair manner.
Moreover, I do not want to treat your argument uncharitably per se, but I often feel when someone uses this argument, it is in itself an uncharitable statement at best, and a straw man at worst. Uncharitably interpreted, the position seems to imply that the proponents of private outsourcing of taxpayer-funded services have an ideological desire to merely line the pockets of rich people, by fleecing taxpayers. If this is the correct interpretation of your statements -- and I'm not assuming it is -- then it reeks of sensationalist class warfare language.
The interesting thing is, I would agree that private corporations do, in fact, try to do just this. But so do labour unions. It's called economic
rent-seeking. It's rampant. It's all around you. And the best way to defeat it, is through open tendering and competition. Meaning, the elimination of sole-source tendering as well as the removal of collective bargaining and binding arbitration laws for public sector workers.
As a free market economist in the truest sense, I don't tend to view corporations or unions as anything other than self-interested economic actors. I am opposed, in principle, to
corporatism (which includes public sector unions).