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privatization
We've Endured a Half-Century of Kleptocrats' Plunder of People's Wealth and Health
Neoliberalism has spurred 45 years of financialization, as Wall St. pillages-for-profit every sector, from healthcare to housing.
May 21, 2025
The Franklin D. Roosevelt administration prioritized a standard for economic and democratic empowerment of the people. FDR's New Deal advanced the common good and an economy for the people. The 1935 Social Security Act became the boilerplate for universal healthcare.
The post-WWII "Golden Age" of capitalism boosted economic growth, people's prosperity, and middle class expansion, lasting until 1975—subsequently displaced by global neoliberal capitalism.
Principle Political Dichotomy: Corporatists vs. Working People
Since the 1970s white supremacists, Christian nationalists, and aspiring oligarchs have converged under the Republican Party umbrella to seek deconstruction of democracy toward harnessing wealth and political power, while promoting supremacistentitlement—the presumed right to criminalize and hold hostage other people's lives based on gender, ethnicity, religion, and class wealth.
Nixon Supreme Court appointee Lewis Powell's 1971 Memorandum, termed a "capitalist coup," further galvanized corporate money toward rewrite of law, policy, and judicial precedent to consolidate corporate political power.
Since Reagan, continual huge tax cuts for wealthy corporatists have spiked national deficits, paid for with deficit-cutting on the backs of working people by cutting public and social programs.
Kleptocracy, also known as "socioeconomic thievery," describes the half-century robbery of the American people by corrupt leaders who expropriate wealth of the governed for their own gain. Contemporary Gilded Age Robber Barons continue to expropriate people's wealth. A RAND Corporation Report reveals that from 1975-2023 the top 1% robbed $79 trillion from the bottom 90%. Had earnings remained equitably distributed at pre-1975 levels, the average worker in the bottom 90th percentile would earn $32,000 more annually.
Even as the neoliberal "greed is good" ethic prioritized enhancement of shareholder profits, Reagan administration neoliberalism supercharged wealth transfer upward, crushing unions and wages, gutting antitrust law, deregulating banks and industries, enabling predatory private equity practices, and legalizing stock buybacks that continue to multiply billionaires' wealth.
Neoliberalism has spurred 45 years of financialization, as Wall St. pillages-for-profit every sector, from healthcare to housing. Kleptocrats leverage rivers of dark money to capture media and dominate lobbyist-controlled legislatures and elections, flooding the 2024 election with nearly $2 billion.
Commodification of Health for Profit Betrays the Original Intent of Medicare
The Social Transformation of American Medicine, by sociologist Dr. Paul Starr is a Pulitzer Prize-winning chronicle of corporate takeover of U.S. healthcare. Starr describes former President Richard Nixon as the first mainstream political leader to "take deliberate steps to change American healthcare from its longstanding not-for-profit business principles into a for-profit model to be driven by the insurance industry."
A 1971 video exchange between President Nixon and his aide John Ehrlichman celebrated the Kaiser CEO's prioritization of profit over healthcare. Enthused Ehrlichman, "...All the incentives are toward less medical care, because the less care they give them, the more money they make."
Ostensibly intended to cut costs and improve healthcare access, Nixon's 1973 HMO Act advanced the concept of for-profit "managed care" health models. Each manifestation of managed care, including Accountable Care Organizations and Medicare Advantage, have proved increasingly profitable for Wall St. and the health industrial complex.
With passage of the 2003 Medicare Modernization Act, former President George W. Bush spearheaded privatized, for-profit Medicare Advantage insurance, purportedly written to "compete" with Original Medicare to save costs and improve healthcare access. Failing to do either, Medicare Advantage betrays the original intent of Medicare—to universalize coverage and rein in health costs with transparent pricing. Medicare Advantage plans often lack data and compliance information, while payment rates are manipulated based on a complex "risk modeling" process.
The Center for Economic and Policy Research reports: Even as Medicare Advantage insurers' profits are inflated, quality of patient care is reduced.
The United States remains an outlier—the only developed nation lacking universal healthcare, the only nation that places profiteering middlemen between patients and their doctors.
Since Reagan, continual huge tax cuts for wealthy corporatists have spiked national deficits, paid for with deficit-cutting on the backs of working people by cutting public and social programs. The 2025 Republican reconciliation bill promotes enormous tax cuts for the wealthy, and huge cuts to Medicaid and SNAP programs.
Were House Republicans serious about cutting "waste, fraud, and abuse," instead of cutting Medicaid coverage for 8.7 million people, they would eliminate Medicare Advantage scams that bleed $140 billion in annual overpayments from the Medicare Trust Fund—invested in as a lifetime earned benefit by every U.S. worker. Fraudulent "upcoding" exaggerates patient health conditions, costing $23 billion in 2023 overpayments. Some Medicare Advantage plans employ AI or a computer algorithm to instantly deny payments—reportedly used by Cigna to deny over 300,000 requests for payments in 2022.
Rigged to maximize government overpayments to pad shareholder and CEO profits—ultimately to privatize Original Medicare—Medicare Advantage overpayments are funded by taxpayers and Medicare Advantage and Traditional Medicare enrollees, who pay, among other costs, increasing Medicare Part B premiums annually—totaling $13 billion higher premiums in 2024.
A physician-authored report advises: "The time has come to declare Medicare Advantage a failed experiment and abolish it." Taxpayer overpayments to Medicare Advantage should instead go to boost an economy and healthcare for the people by eliminating profit-maximizing insurance middlemen. At least 22 studies report annual $600 billion Medicare for All administrative savings, enough to extend comprehensive health coverage to all ages.
A 2018 economic analysis by UMass Amherst Economists concluded that Medicare for All would significantly improve healthcare outcomes, and reduce healthcare spending by nearly 10%—from approximately $3.24 trillion to approximately $2.93 trillion. Additional projected annual prescription drug savings total $200-$300 billion.
Washington Complicity in Half-Century Privatization of Medicare
Further boosting privatization of Medicare, the Centers for Medicare and Medicaid Services' (CMS) "innovative payment" experiments, modeled on "Managed Care" Accountable Care Organizations, were written into the Affordable Care Act. The Congressional Budget Office reported in 2023 that CMS experiments with "value-based" ACO payments failed to control costs, improve quality, or increase equity, costing Medicare $5.4 billion more than it saved during its first decade.
Medicare for All Would Vitalize an Economy for the People
The United States remains an outlier—the only developed nation lacking universal healthcare, the only nation that places profiteering middlemen between patients and their doctors. U.S. healthcare spending since 1980 outpaces other nations, and demonstrates "by far the worst overall health performance."
Only Single-Risk-Pool Medicare for All can leverage cost-savings of global health budgets to achieve financially sustainable, universal, comprehensive healthcare, while greatly reducing the 30% administrative costs of thousands of fragmented Medicare Advantage plans. The newly introduced Medicare for All Act of 2025 would eliminates out-of-pocket costs—premiums, copays, and deductibles—and unnecessary supplemental plans—Medicare Parts A, B, C, D, and Medigap.
For the first time in almost a century prioritization of universal health coverage would eliminate profiteering middlemen, boosting an economy that serves working people—not the ballooning billionaire kleptocracy.
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'US Mail Is Not For Sale': Americans Across Political Spectrum Oppose Postal Service Privatization
"Postal customers should trust their gut when it comes to schemes to sell off or transfer the USPS," said the head of the American Postal Workers Union.
May 08, 2025
As the Trump administration signaled a potential step toward privatizing the U.S. Postal Service with the reported selection of a FedEx board member to serve as postmaster general, new polling on Thursday showed just how strongly the American public would oppose such a move.
The survey by Hart Research Associates and North Star Opinion Research, which was commissioned by the American Postal Workers Union, found that 60% of respondents were opposed to privatizing the postal service, while just 26% were in favor.
The opposition cut across ideological, geographic, and demographic divides, with people in all regions of the country saying they wanted to maintain the USPS as a public service by a margin of at least 29 points—and as many as 40 points in western states.
While rural voters supported President Donald Trump by a 23-point margin in the 2024 election, the research firms posited that the heavy reliance people in far-flung areas have on the USPS helped push rural respondents to say they oppose privatization, with 58% saying they were against it.
As Common Dreams reported last month, an analysis by the Institute for Policy Studies found that private mail carriers like FedEx and UPS already charge "remote surcharges" to 8% of all U.S. ZIP Codes—home to nearly 4 million people—because they are in mountain communities and other remote areas. While USPS has a universal service obligation, people in rural areas pay up to $15.50 for deliveries from private companies.
Fifty-six percent of Americans said privatization would result in higher prices for mailing packages and letters, while 17% said prices were likely to improve.
Without competition from USPS, private companies could impose additional charges for weekend deliveries, fuel, residential deliveries, and more.
"Postal customers should trust their gut when it comes to schemes to sell off or transfer the USPS," said APWU president Mark Dimondstein. "Plans to privatize the Post Office are about enriching Wall Street and not serving Main Street. Evidence shows that selling off the USPS would lead to higher prices for postal services as well as higher prices for shipping packages at FedEx and UPS."
On the House floor recently, U.S. Rep. Sarah McBride (D-Del.) warned that "corporations won't serve what isn't profitable."
"This isn't about efficiency," she said. "This is about dismantling public services so they can prove government doesn't work."
The poll was released two months after Wells Fargo presented a five-step plan for privatizing USPS to Wall Street investors, including raising USPS prices by as much as 140%, selling postal real estate to commercial bidders, and imposing mass layoffs on the service's 600,000 employees.
The bank said privatization would lead to the "harvesting," or closing, of neighborhood post offices across the country—something 72% of respondents opposed in Thursday's poll.
Trump ally Elon Musk also said in March that Amtrak and USPS were top targets for the so-called Department of Government Efficiency, which the president selected him to lead and which has pushed to dismantle numerous government agencies and laid off nearly 300,000 federal employees.
"I think logically we should privatize anything that can reasonably be privatized," Musk said. Trump has also expressed support for privatization.
Respondents to Thursday's poll expressed support for a number of steps that could strengthen the U.S. Postal Service's finances, including 77% who backed making office supplies available for purchase in post offices, 72% who supported the selling of hunting and fishing licenses, and 60% who supported making magazines and newspapers available for purchase.
"The survey results indicate that the outlook is good in our ongoing fight against privatizers trying to sell off our public Postal Service for profit," said the APWU. "We should remain steady in our message—the U.S. Mail Is Not for Sale!"
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'Aggressive Step' Toward Privatization as Trump Picks FedEx Board Member to Lead USPS
"It is a blatant conflict of interest and an attempt by President Trump to install a handpicked loyalist who he believes will put his interests over what may be best for the Postal Service and the American people."
May 07, 2025
President Donald Trump and the U.S. Postal Service's leadership have reportedly agreed to appoint a FedEx board member to succeed Louis DeJoy as postmaster general, heightening concerns that the administration is pushing the independent mail agency toward privatization.
The Washington Postreported late Tuesday that Trump and the USPS Board of Governors are expected to name former Waste Management CEO David Steiner to lead the Postal Service. Steiner is currently the lead independent director at FedEx, a Postal Service competitor.
Brian Renfroe, president of the National Association of Letter Carriers—a union representing nearly 300,000 active and retired letter carriers—called the decision to place Steiner at the head of the USPS "an aggressive step toward handing America's mail system over to corporate interests."
"Private shippers have been waiting to get USPS out of parcel delivery for years," said Renfroe. "Steiner's selection is an open invitation to do just that. This isn't just bad policy—it's a direct assault on the workers who keep the mail moving and the public connected. The damage will hit rural communities hardest, where the Postal Service isn't just a convenience—it's a lifeline. And make no mistake: If this appointment stands, it threatens 7.9 million jobs tied to the postal industry and service to over 300 million Americans."
"The board has the responsibility to do what is best for USPS," he added. "This decision is not only a failure in that responsibility but shows open contempt for the work of America's letter carriers and the public good."
"The Trump administration has been relentless in its attempts to privatize America's most trusted institution, both outwardly and behind the scenes."
The USPS Board of Governors—which is currently comprised of two Democrats, two Republicans, and an independent—is ultimately responsible for appointing the head of the mail service, who cannot be directly fired by the president.
The Post reported Tuesday that postal governors, who are appointed by the president and confirmed by the Senate, submitted three postmaster general finalists to the White House in recent days, including Steiner.
"Trump has the power to immediately reshape the [postal board] with five appointments: The board has four vacancies, plus a seat that is occupied temporarily," the Post noted. "Trump announced plans to nominate Anthony Lomangino, a GOP financier, to one of those roles."
Earlier this year, Trump considered but soon dropped a plan to fire every member of the postal board and bring the USPS under the direct control of his administration. The president has also spoken openly about privatizing the mail service, saying in the wake of his 2024 election win that "it's an idea that a lot of people have liked for a long time."
Rep. Gerry Connolly (D-Va.), the top Democrat on the House Oversight Committee, said in a statement Tuesday that "the Trump administration has been relentless in its attempts to privatize America's most trusted institution, both outwardly and behind the scenes."
"If these reports are true, it is a blatant conflict of interest and an attempt by President Trump to install a handpicked loyalist who he believes will put his interests over what may be best for the Postal Service and the American people," Connolly said of Steiner's selection. "The American people deserve a postmaster general who will stand up for an independent, fair, and accessible Postal Service and who will work with Congress to ensure Americans in all communities nationwide can continue to rely on this public service to deliver mail, medications, ballots, and more without prejudice."
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