Wednesday, September 19, 2018

Private/Public?

One of the things we normally do in this country is allow private companies to make a profit while administering Government programs.

This stems from a somewhat misguided belief that they can do it cheaper and better than the Government.

However, if in fact the Government is allowed to provide the same service, the private companies complain arguing they can't compete.

That should tell you that the premise is simply wrong.

Now, there are certainly advantages to private enterprise in a market that is being developed as they can respond more quickly and compete in real time to win markets.

That advantage disappears however as a market matures and what is required is simply administration.

Take something like the Social Security Administration.  No private company could provide the service they do at anything like the same cost.  They ultimately are concerned about profit, not service so to provide the same service plus profit would cost more.

Public workers take a lot of abuse, but most of them aren't very different than private workers, they go to work, do their job, get paid.

To my knowledge the main reason we emphasize letting private companies to provide services is to provide them profits.

This is not to say that inadequately funded public services, like education in many places, is going to work.  It will however work better for the majority of students in the area than say a charter school that provides services for profit to a select group.

Diverting funds for a purpose like that ultimately penalizes the many for the privileged few.

We should strive to have the most efficient Government services we can.  Once you add profit as a cost, you haven't achieve that.


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