Private equity bought America's essential services (rubbishtalk.com)

Article summary

The article discusses how private equity firms have acquired and consolidated essential services in the US, such as fire trucks, ambulances, and nursing homes, leading to increased costs, reduced quality, and even loss of life. This is attributed to the private equity business model, which prioritizes profit over public service. The article cites examples of companies like REV Group, which has a $4.5 billion backlog for fire trucks, and Envision Healthcare, which filed for bankruptcy after being acquired by a private equity firm. The article argues that the current system allows private equity firms to extract profits at the expense of the public.

Main themes

• Private equity consolidation
• Essential services
• Public vs. profit
• Antitrust policy
• Regulatory failure
• Market dominance

What commenters say

• The US should return to pre-1980s antitrust policy to prevent consolidation and promote competition.
• Private equity firms should not be allowed to acquire companies that provide essential services, as it leads to prioritization of profits over public needs.
• The current antitrust guidelines are too vague and allow companies to circumvent them, leading to unchecked consolidation and market dominance.
• Breaking up large companies and enforcing antitrust laws can be an effective way to promote competition and prevent abuses of market power.
• The acquisition of companies by private equity firms can lead to debt loading, cost cutting, and reduced quality of services, ultimately harming the public.
• Some argue that companies should be allowed to be bought and sold, but with regulations in place to prevent the creation of monopolies and the exploitation of consumers.
• The success of antitrust enforcement is debated, with some arguing that it has been effective in the past and can be again, while others claim it has been ineffective and easily circumvented.
• The role of regulatory capture and lobbying in shaping antitrust policy and allowing companies to avoid enforcement is a significant concern.