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Friday, October 5, 2012

John Harvey — Why Government Should Not Be Run Like A Business

The idea that government should be run like a business is a popular one with both Republicans and, albeit to a lesser extent, Democrats. But this betrays a basic misunderstanding of the roles of the private and public sector. We should no more want the government to be run like a business than a business to be run like the government....
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.
Forbes | Pragmatic Economics
Why Government Should Not Be Run Like A Business
John T. Harvey | Professor of Economics, Texas Christian University

2 comments:

  1. ? Here's a simpler question. How can the monopoly issuer of a currency make a profit in that currency?

    Does ... not ... compute ...! Ouch. Makes my head hurt trying to imagine how some people fully expect an issuer to profit in it's own issuance. Is that like getting back more spit than you spat into the wind? Or worse? It's a miracle!

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  2. "Does ... not ... compute ...! "

    This is a mathematical assessment that requires certain cognitive abilities that many simply do not appear to possess...

    rsp,

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