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False Business Idols

by: Bruce Bourgoine

Tue Feb 23, 2010 at 14:47:18 PM EST


When the town clerk cannot handle an item or when standing in line in a state vehicle registration office or when arguing about federal deficits, one is bound to hear a low muttered growl that "Gov'mint ought to run like a bees-nest".  This same sentiment seems always to echo throughout political campaigns when some candidate picks up the mantle of "business-person rescuer from evil government inefficiency".  Yet after dealing with the countless business inefficiencies that pervade our lives from clueless big box employees to filling out convoluted insurance claim forms to witnessing the outright thefts of our retirement nest eggs do we ever pause to consider that government will not really benefit from "business therapy".

The fantasy that government can be run like a business is a simplistic notion designed for populist appeal and is at best naive. It is a "loss leader" diversion that ignores a fundamental role of government: rendering essential services that private markets can not, should not, would not, and ought not to deliver because the elements of absolute fairness, regard for personal dignity, and the greater common good are key components of government services expectations and not those of business markets. In addition, government services need to be driven by need that is not contingent on financial class or ability to pay and is ideally independent of the outside financial interests of businesses in particular.  The incentive in government is to do right and the profit motive may occasionally do incidental right but is by and large blind to justice and egalitarianism ideals. Governments and business serve different masters and therefore have greatly different roles in our society.

All the preceding is not meant to argue that wisdom, careful accounting, occasional selective business practices, and seeking good efficiencies should not be applied to government spending.  Indeed, the opposite is true.  While transparency is a buzzword now in political discourse, its desired effect - the honest accounting of tax dollars for services rendered, how to best provide excellent delivery of services, and the relationship of those services to the improvement of our social welfare should always be clearly and honestly communicated to citizens.  And government needs to be responsibly responsive to an expectation of avoiding wastefulness and applying appropriate efficiencies in service delivery.  There is nothing wrong with a bit of "Yankee" expectations or challenges to spending after the goal of a service is determined as essential by a reasoned and fair political process.

The road we decide to travel decides where we end up.  If we wish to run government like a business, we may get big box style price slashed tax rates but in turn we will receive more marginalized members of society in desperate situations, shuttered schools that failed because of underfunding, puddles of pollution, and a profoundly unfair society that caters to a very few with the misleading efficiency of business.   Challenge our candidates for governor to address good governance and not erect false business idols.                

Bruce Bourgoine :: False Business Idols
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And government often does (0.00 / 0)
something that the private sector refuses to do: supply services to everyone that wants it at the same cost. The classic example are municipal fire departments, which are funded by taxes paid by property owners whether they use the service or not. That these developed out of for-profit private "fire insurance" companies that only protected subscribers demonstrates an evolution of thinking of society.

This is absolutely correct (0.00 / 0)
Far too many people are willing to let a private company get away with any sort of failure, but ask that government perfectly provide everything to everybody. I see something similar to this in the health reform debate. People worry about government bureaucracy setting health coverage policy but don't blink an eye regarding the giant insurance company bureaucracy that currently sets policy.

According to the conventional wisdom, when a private insurer denies coverage, it is just business. If the government denied coverage, it would be a death panel.

Personally I feel that I'd rather take my chances with the panel that could be replaced by the winner of the next popular election rather than the panel that can only be replaced by some group of shareholders. The shareholders actually benefit from denying my health care.

Do single payer systems sometimes make bad choices regarding policy? Yes. Are they more accountable for them than private insurers? I'd say yes.


I think the reason for what (0.00 / 0)
you describe can be simply put: the citizenry feels that they have at least some say about the workings of government, but none regarding how the private sector works. And so they take advantage of it.

A similar take: when I asked a friend why it is so frickin' hard for people in this country to properly fund public education, he explained: school budgets are the one item that the people have direct control over, unlike other governmental budgets, and so they exercise this power whenever they can. Even if they believe in the mission of the public schools.


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