Skip Navigation
Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. She is currently on leave.
More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero � all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Private Sector Welfare

By Megan McArdle
Aug 12 2009, 2:20 PM ET Comment

Perhaps surprisingly, I'm pretty skeptical of a lot of the efforts to outsource social services.  "Competition" for providing a lot of welfare services is kind of meaningless, and the feedback mechanism is pretty weak.  Trash collection is easy to monitor--is there garbage on the streets?--an in consequence, privatization goes well.  But the people experiencing any decline in the quality of social services are usually poor people who mostly don't vote.  So the competition is merely to find a bidder who can cut services to the barest bone.  For some conservatives, obviously, this is a feature rather than a bug.  But when children or the developmentally disabled are involved, I don't think price should be our primary consideration in deciding how to provide services.



I understand that social service agencies also lack many of these institutional checks.  But in practice, a lot of the outsourcing efforts have had a ton of problems.  Jason Deparle outlines one such case, in Wisconsin, in his fantastic book American Dream, which is a must read for anyone who wants to have an opinion on welfare policy in this country.  The Wall Street Journal details another, in Indiana.  If we are going to have social services--and clearly, we are--I think they should probably be classed, along with defense, as a true public good.  Though I'm willing to be persuaded by evidence of successful privatizations.

Presented by

More at The Atlantic

Watch and Buy: Kickstarter Is the Hipster Home Shopping Network Kickstarter Is the Hipster Home Shopping Network
How the Global Middle Class Can Save the American Middle Class How the Global Middle Class Can Save America's Middle Class
Does the Supreme Court Believe in Double Jeopardy Protections? Does the Supreme Court Believe in Double Jeopardy Protections?
The New Economics of Happiness The New Economics of Happiness
50 Cent Endorses Marriage Equality; Wonders Why There's No 'White History Month' 50 Cent's Mixed Gay Marriage Endorsement

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.
blog comments powered by Disqus
View All Correspondents

The Biggest Story in Photos

Where in the World? Part 3: A Google Earth Puzzle

May 25, 2012

Subscribe Now

SAVE 59%! 10 issues JUST $2.45 PER COPY

Facebook

Newsletters

Sign up to receive our free newsletters

(sample)

(sample)

(sample)

(sample)

(sample)

(sample)

Megan McArdle
from the Magazine

Why You Can’t Get a Taxi

And how an upstart company may change that

Europe’s Real Crisis

The Continent’s problems are as much demographic as financial. They won’t go away soon.

Why Companies Fail

GM’s stock price has sunk by a third since its IPO. Why is corporate turnaround so difficult…