How can the government be a private entity?

I feel like I am taking crazy pills.  Can someone tell me what I am missing?

Facts

  1. John Kasich is the governor of Ohio.
  2. He wants to privatize the liquor stores in Ohio by selling them to a private entity, JobsOhio.
  3. Kasich is going to be the chairman of JobsOhio!

How can Kasich be the governor–a public official–AND chairman of a private entity, JobsOhio?

From Think Progress

Gov. John Kasich (R-OH) has played a leading role in the Republican assault on workers’ rights, pursuing a bill to strip his state’s public employees of collective bargaining rights. But he has also been actively pushing his state’s assets into the hands of private corporations, with his main job creation plan being the formation of JobsOhio, a private entity that will be tasked with coaxing business into the Buckeye state. Similar schemes have not worked in other states, but Kasich has plowed forward nonetheless

Part of Kasich’s plan for financing his new, privatized development agency (of which he will be chairman) includes leasing the state’s liquor stores to JobsOhio, which will then use the money to run its operations.

And because JobsOhio doesn’t actually have any money to pay even the $1.5 billion, it will “turn to Wall Street to issue bonds to finance the deal.” As Plunderbund noted, “Wall Street, which obviously expects a return on its investment, won’t finance the deal unless Ohio (i.e. Kasich) is willing to allow them to essentially buy a twenty to thirty year revenue stream for pennies on the dollar.”

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2 Responses

  1. Make fun of my Ohio geographical knowledge via an email exchange with a colleague. Start at the bottom…
    ____________________________________
    From: JK
    Hell yeah it does. Anything south of Columbus…
    No one knows what politicians are doing.

    From: TA
    Does Ohio have backwoods?

    From: JK
    I can’t believe people anywhere wouldn’t be losing their minds over this… let alone a swing state

    From: TA
    I can’ believe its being floated. Don’t you think (Republican or Democrat) that NJ/NY residents would be losing their minds of Christie or Cuomo tried to pull this?

    From: JK
    I love politicians. What a ripoff…

    From: TA: Check this out…

  2. […] Viewed Posts How can the government be a private entity? How to pick a winning tourney bracket?The Economics of How I Met Your MotherWho Is The Unqualified […]

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