Forbes: Why Government Should Not Be Run Like A Business

[Qutzupalotl]

But while we might all grant that there are exceptions, the general question still stands: does it make sense to run government like a business? The short answer is no. Bear in mind, first, that “efficiency” in the private sector means profit. Hence, to ask that the government be run like a business is tantamount to asking that the government turn a profit. The problem in a nutshell, is that not everything that is profitable is of social value and not everything of social value is profitable. Reality TV, pornography, fashion, sports, and gambling are all of questionable social value, but each is quite profitable and exists in the private sector. Meanwhile, few would argue that the Army, Navy, Air Force, Marine Corps, Coast Guard, police department, fire department, libraries, parks, and public schools are of no social value, and yet they could not exist if they were required to be profitable. Imagine maintaining a standing military by selling subscriptions door-to-door: “Hello, my name is Captain Johnson, and I represent the US Army. Are you afraid of foreigners? Would you like guaranteed protection against invasion, pillaging, enslavement, and more? Please see our brochure for our three levels of service.” There would, of course, be a few subscribers, but nothing approaching the level necessary to truly protect the United States from attack.

To reiterate, the key issue is this: not everything that is profitable is of social value and not everything of social value is profitable. The proper role of government is the latter. Those arguing for a business model for government must necessarily be ready to shut down all government functions that do not earn a profit, regardless of their contribution to our well being. And, if the public sector is being run properly, that should mean every single one. If it’s profitable, they shouldn’t have been doing it in the first place. There is no need for the government to start a chain of hamburger stands, hardware stores, or coffee shops. Rather, they run child protective services, the National Park Service, and the Air Force. Profit is the realm of business, while unprofitable but socially useful tasks is the responsibility of government.

http://www.forbes.com/sites/johntharvey/2012/10/05/government-vs-business/

[freshwest]

1. Excellent argument, I've saying something like this for years, this is much better. Thanks for this.

[KT2000]

2. Just one example:

The University of Washington increased the number of foreign and out of state students because they pay higher tuition. That mean there were fewer openings for in-state students and they screamed bloody murder.
That is how business works - it is about the money.

[SunSeeker]

3. Great article- clear explanation of why government can't be run like a business.

I love the military example, "Please see our brochure for our three levels of service." LOL. It also by implication explains why businessmen make (and have made) lousy Presidents.