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Of the tons of things wrong with privatization, I've always thought the biggest thing would end up being the "plausible deniability" you just mentioned. They will just go round and round, shuffling us off to different "privatized" agencies, and if you ever do manage to get the attention of an actual government official, they'll blame it on some unintentional company screw-up. And if it gets really bad, a corporation like Accenture will just create some new entity, give it a new name, and start the shuffle all over again. The end result, of course, is that we the people will have lost our first amendment right to redress our grievances to the government. There isn't going to be any government left to redress by the time they get through.
I know about this first hand too, it's the exact thing my son is going through with privatized workmen's comp insurance in Oregon.
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