Mookie4ever wrote:Private industry exists to make a profit. Public companies have a duty to their shareholders to maximize profits. I don't know how you can say that without a doubt savings from going private would be passed on to consumers. Or did I get you wrong and you just said that it is possible for the savings to be passed on to consumers? Without govt regulation I believe that private industry will squeeze as much out of the public as they can.
Almost always, cost-savings are passed on to the consumer. It's economic theory, my good man.
A business that has just incurred a cost-savings that keeps its price at a pre-savings level does not maximize profits at all. By lowering price (passing cost savings onto its customers), the business often does not experience lower revenue at all. A reduction in price almost always leads to an extension of the consumer base - where additional profits can be extracted. The additional profits are usually more than enough to compensate the loss of profits from the existing consumers. Therefore, if a business has experienced a cost-savings and has a primary goal of profit-maximization, one can reasonably expect it to pass on at least part of their cost savings to consumers.