Going Private

Regarding government, the less the better. This dictum forms the backbone of the Reagan Theory of Governance. A corollary to this is that the private sector routinely offers higher-quality goods and services at lower costs. Now this thinking is being structured by the Administration into formal policy. Watch for “privatization” —the transfer of federal properties and activities to the private sector—to become the watchword of the rest of the Reagan second term.

Mr. Reagan’s inclination to privatize has been reinforced by the experience of other leading industrialized nations. Thus, during the seven years of Margaret Thatcher’s stewardship, more than two dozen government-owned businesses have been sold to the private sector for some $28 billion, including British Telecom, Jaguar, and British Aerospace. This year, Mrs. Thatcher will hang a “For Sale” sign on British Gas, all major British airports, British Airways, and the National Bus Company. In 1987, Rolls-Royce aero-engine manufacturers and the remaining publicly held portion of British Petroleum will be on the block. Revenue from these and other sales will permit Mrs. Thatcher to make good on her promise to cut the basic income-tax rate from 30 to 25 per cent.

JM

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John McLaughlin

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Regarding government, the less the better. This dictum forms the backbone of the Reagan Theory of Governance. A corollary to this is that the private sector routinely offers higher-quality goods and services at lower costs. Now this thinking is being structured by the Administration into formal policy. Watch for “privatization” —the transfer of federal properties and activities to the private sector—to become the watchword of the rest of the Reagan second term.

Mr. Reagan’s inclination to privatize has been reinforced by the experience of other leading industrialized nations. Thus, during the seven years of Margaret Thatcher’s stewardship, more than two dozen government-owned businesses have been sold to the private sector for some $28 billion, including British Telecom, Jaguar, and British Aerospace. This year, Mrs. Thatcher will hang a “For Sale” sign on British Gas, all major British airports, British Airways, and the National Bus Company. In 1987, Rolls-Royce aero-engine manufacturers and the remaining publicly held portion of British Petroleum will be on the block. Revenue from these and other sales will permit Mrs. Thatcher to make good on her promise to cut the basic income-tax rate from 30 to 25 per cent.