increased demand for private (vs. public) police services

Aside from whatever (legitimate) non-economic arguments one might make about the need for public "police services", they also have some aspects of what economists call a "public good".

The market finds it difficult to provide "public goods" primarily because they are "non-excludable" (you can't keep me from consuming, even if I don't pay, at low cost). Public goods are a matter of degree, but the extent of non-excludability is a key determinant in whether markets can provide them efficiently.

Now, "public goods" can be provided by the private sector (e.g., radio). And "private goods" can be provided by the public sector (e.g., elementary and secondary education services). I apologize for all economists for the confusing terminology!

Police services are in the middle of this spectrum because, in practice, it is difficult to exclude people who don't pay. That said, the private sector can (and does) provide police services-- most notably through what is usually called "security".

Here's information on the move from public to increased private provision of traditional public police services-- from Bobby White in the WSJ...

Facing pressure to crack down on crime amid a record budget deficit, Oakland is joining other U.S. cities that are turning over more law-enforcement duties to private armed guards.

The City Council recently voted to hire International Services Inc., a private security agency, to patrol crime-plagued districts. While a few Oakland retail districts previously have pooled cash to pay for unarmed security services, using public funds to pay for private armed guards would mark a first for the city....

Hiring private guards is less expensive than hiring new officers. Oakland -- facing a record $80 million budget shortfall -- spends about 65% of its budget for police and fire services, including about $250,000 annually, including benefits and salary, on each police officer.

In contrast, for about $200,000 a year the city can contract to hire four private guards to patrol the troubled East Oakland district where four on-duty police officers were killed in March. And the company, not the city, is responsible for insurance for the guards.

Oakland is not alone in seeking to improve public safety while reining in spending. This month, the Chicago City Council, facing a possible $200 million budget deficit, proposed expanding the responsibilities of private armed security forces by authorizing them to write traffic citations. In New Orleans, neighborhood committees have sought to expand special tax incentives to pay for private security for neighborhood patrols....