Overall which is economically more efficient in the USA, government or private enterprise?

[wain]

It used to be that college economics professors and economics textbook authors logically argued that government was clearly less efficient economically than private enterprise (corporations). That has been my observation having worked both worlds.

Recent posts suggest that the winds have changed and that there is a sense that government is, overall, more economically efficient that private enterprise.

[porphyrian]

1. That's a trick question.

Private enterprise is more efficient unless it's milking a government contract, which they invariably all do.

[BlooInBloo]

2. The winds have changed only because of the jackass behavior of corporations...

... their fundamental theoretical benefits haven't altered in the least.

It's just DUers casting about for a savior.

[Mythsaje]

4. Ugh...

ROFL

Democracy will have to "save" itself, in spite of all the people who have nothing contstructive to contribute to the discussion.

[InkAddict]

8. Oh, perfect...

Government holds elections using machines manufactured privately and serviced by pirates - I voted contributed)to the dialogue. Look what happened twice!

[Mythsaje]

9. That's the position we're in...

At least in the view of some folks... We can't look to our leaders for, well...leadership or else we're "looking for a savior." So we have to do it ourselves...but no one in power cares what we think.

[wuushew]

3. I have no complaints of my local utilities

water and sewer is charged at cost and seems to work fine. Why would I want to enable a private company to gouge me by earning profit?

[MannyGoldstein]

5. Government Is More Efficient By Far

Medicare spends about 5% on overhead, whereas private insurers spend 20+% - and Medicare receive demonstrably-better care at far lower prices.

Social Security's overhead is something like 3% - but they get the checks to the right people on time, almost every time.

The Post Office gets letters to the right place, quickly and with great reliability.

There is absolutely waste to be found in government enterprises - but there's far more waste in private enterprises.

[TahitiNut]

12. Some people can't distinguish between "waste" and "excess capacity."

That's largely because they're regarded as nearly synonymous and equally harmful in private business. Any businessman knows that excess production or even production capacity is "wasted" since it's an expense in excess of offsetting revenues.

Government, however, has a significantly different basic objective: preparation for even the most remotely foreseeable threat - even war with Canada. Government is obliged to incur expenses in preparation for such threats. Hurricanes, tornadoes, floods, sabotage, invasion, earthquakes, fires, economic catastrophe, and a host of other threats that hopefully NEVER happen. A government that does not do so is INSANE.

In the 30s, government built enormous "excess capacity." Some was called Grand Coulee Dam, Hoover Dam, and the hydroelectric in the Tennessee Valley. There was more electricity in the west than was used for many years. (Ever wonder why Las Vegas had such enormous amounts of neon lights? Ever wonder why the aluminum industry put plants near those dams?) Another example was the conversion of many hundreds of square miles of desert land into farmland in eastern Washington by the irrigation efforts of the Army Corps of Engineers - at a time we were a food EXPORTING country. That's "excess capacity" for ya.

We now have imbeciles who think it's a Good Idea to run government "like a business" ... and we got Katrina.

[MannyGoldstein]

13. That's A Really Good Point

Thank you.

[applegrove]

6. Where markets fail in delivery of a non-market goal, government is more efficient

[Synnical]

7. Totally a bait and switch question

[rucky]

10. Two different laws of economics working, here...

Private enterprise: When times are bad, demand goes down and supply goes up.
Government enterprise: When times are bad, demand goes up and supply goes down.

You can't compare efficiency when their overall goals are so different.

[AndyTiedye]

11. It's Not Capitalism Anymore When Robber Barons Buy the Government

There is another word for that form of government. It starts with an "F",
and it is the least efficient form of government of all
— except at producing misery.