Wednesday, July 6, 2011

The Origins of the Term "Privatization"

Michael Perelman on the origins of the term "privatization." I first met Michael many, many years ago as an undergraduate at CSU Chico where he was teaching:

The Nazi Heritage of Privatization, by Michael Perelman: Privatization is very popular among laissez-faire types today. The recent issue of theJournal of Economic Perspectives offers a ... tale in which the term privatization is falsely credited to Peter Drucker. In fact, Nazis coined the term. Their intent was to skew the distribution of income toward the rich, with the objective of reducing consumption. After all, the rich have a lower marginal propensity to consume.

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