The Erosion of Public Services in Pursuit of Profit
In recent years, the term inshitification—popularized by author and technology critic Cory Doctorow—has been used to describe the systematic decline of digital platforms as they prioritize revenue extraction over user experience. This cycle follows a familiar pattern: a company initially offers value to attract users, gradually shifts its focus toward monetization at their expense, and ultimately collapses under the weight of its own exploitative practices. While this phenomenon is most evident in the private sector, a similar process is underway within the federal government, where public institutions are being hollowed out, privatized, and exploited for financial gain.
The Corporate Takeover of Government
Unlike corporations, which exist to maximize profits, the U.S. government was established to serve the public interest. It provides essential services—education, infrastructure, healthcare, environmental protection, and social safety nets—that are not always profitable but are crucial to societal well-being. However, under the influence of corporate interests and billionaire-backed policies, government agencies are increasingly being restructured to function like private enterprises, prioritizing short-term financial gains over long-term public benefit.
This transformation follows a three-step process, mirroring the trajectory of declining tech platforms:
1. The Systematic Undermining of Public Institutions
Much like digital platforms initially offering free or beneficial services before degrading them, key government functions are being deliberately weakened. Public services are underfunded, understaffed, and mismanaged to create the perception of inefficiency, providing justification for their privatization.
The U.S. Postal Service has faced persistent budgetary restrictions, limiting its ability to compete with private delivery services.
Public transportation systems suffer from chronic underinvestment, leading to unreliable service that pushes commuters toward private alternatives.
Public education faces funding cuts that drive families toward charter schools and private institutions, despite evidence that well-funded public schools improve overall educational outcomes.
2. The Privatization of Essential Services
Once public institutions are sufficiently weakened, the next step is to shift control to private corporations—often at a discount. This strategy mirrors the approach used by private equity firms: acquiring struggling entities, extracting maximum value, and leaving behind a diminished or dysfunctional system.
Medicare privatization, particularly through Medicare Advantage plans, redirects billions of taxpayer dollars into corporate hands while restricting patient care.
Private prison contracts incentivize mass incarceration, leading to policies that prioritize profit over rehabilitation or justice.
Disaster response, historically managed by agencies like FEMA, is increasingly outsourced to private contractors, leading to inefficiencies and profit-driven decision-making.
3. The Extraction of Wealth and Institutional Decay
At the final stage, corporate interests extract as much financial gain as possible before abandoning a hollowed-out institution. This mirrors the decline of once-thriving digital platforms that become unusable due to excessive advertising, paywalls, and algorithmic manipulation. In government, the consequences are far more severe:
Social Security, a pillar of economic stability for millions, faces calls for privatization, which would shift retirement security into volatile financial markets.
Veterans’ benefits are increasingly outsourced, leading to inconsistent and inadequate care for those who have served.
Public utilities, when privatized, often result in higher costs and reduced service quality, as seen in cases of water and energy infrastructure being sold to corporate entities.
The Consequences of Corporate Governance in the Public Sector
The push to operate government like a business disregards a fundamental distinction: while corporations prioritize shareholder returns, public institutions exist to provide stability, equity, and essential services. The systematic erosion of these institutions in favor of privatization leads to increased inequality, reduced access to critical services, and a weakened social safety net.
Rather than continuing down this path, policymakers must recognize the importance of well-funded, functional public institutions and resist efforts to transform governance into a profit-driven enterprise. Ensuring that public services remain accessible, effective, and accountable to the people—not corporate interests—is essential for maintaining a just and equitable society.
