2012-11-08

Cato: Privatize or Contract Out?


The Metropolitan Atlanta Rapid Transit Authority (MARTA) spends $50 million more than its peers on employee benefits, says KPMG in an audit of the agency. Reducing benefits to national average levels (easier said than done) and contracting out some services such as cleaning would allow MARTA to erase a $33 million deficit in its annual budget.
Comparing a transit agency’s efficiency to its peers is like criticizing a bank robber for stealing more than home burglars. The fact is that they are both ripping people off, and just because some are a bit less rapacious doesn’t make them any more morally correct.

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