Why does privatization of water resources lead to water scarcity?

That is, a lesser known predator of world water to the commonly discussed pollution and climate warming is privatization by large corporations, and it is a large cause of water scarcity.

Privatization often leads to massive layoffs, at times putting service and water quality at risk due to understaffing. Layoffs are commonly used to reduce costs and increase profits. Such layoffs are not only devastating to workers, but also to consumers.

One-quarter of humanity faces a looming water crisis, including the prospect of running out of water, which may seem inconceivable when 70 per cent of the Earth’s surface is water. Nevertheless up to 80 per cent of available surface and groundwater is being used every year and water demand globally is projected to increase by 55 per cent by 2050. Why is the world facing a crisis of water scarcity and what is driving the increasing demand for water?

Explanation:

The first reason that is causing water stress around the world is the growing human population at the same time as the water supply has remained the same. Given that there are almost one billion more inhabitants on Earth every 15-20 years, this has led to a progressive deficit in the global water supply.