[mmt]

I think you're confusing outsourcing with deregulation. A private contractor would happily do that for enough subsidy.

[cjoh]

(subsidies without regulation) == Corruption

[mmt]

Indeed. I think the OC was illustrating the converse situation, which is that unfunded mandates to the private sector are untenable.

In either case, I agree that the two go together. Perhaps there's just too much ambiguity in the term "privatization."