ABSTRACT
The private production of municipal goods and services has a long history in the United States. Contracting-out, the most common form by which public goods and services are privately produced, existed long before the Constitution.1 Corruption has often plagued the private production of public goods and services, and thus the public sector has often been forced to resume production following failed attempts at private production. Indeed, as far back as 1895 the Mayor of Detroit stated, “Most of our troubles can be traced to the temptations which are offered to city officials when franchises are sought by wealthy corporations, or contracts are to be let for public works.”2 Hence, responsibility for the production of municipal goods and services in the United States has long resembled a pendulum, swinging (sometimes slowly, at other times more quickly) back and forth between the public and private sectors. Many cities have swung between these two poles numerous times, experiencing first hand the benefits and disadvantages of each.3
