As I have state previously, government is nothing but a corporation which utilizes physical force for causes it considers “just” [a] [b]. As such, there is no reason why a government should be any better or worse at competing in a market than any other player. Those who pay into a government (through taxes or service fees) are the customers, those who control the government (through elections) are the owners.
That said, why do I so often take the position that government run services are generally inefficient and ineffective? It is (only) partly due to the source of the funding. In most government services, the funding is not provided primarily by those benefiting from the service. This means that a government service can offer an equivalent service for an equivalent price to a “for profit” business without being as efficient. This is because the gap in costs is paid from other sources (such as taxes). This problem isn’t exclusive to government, but is shared by all charitable (often non-profit) businesses that take donations in exchange for providing a service to third parties. In the case of charitable businesses, those providing the funding are expected to keep an eye on the cost differential between what the charity they are funding requires to provide a service, and what that same service would cost from an equivalent non-charitable business.
Some level of increase is acceptable since some costs are incurred to ensure that the recipients of the service meet the criteria set by the charity, and more is spent collecting additional donations. If this overhead becomes too high though, competing charities will normally rise up which will offer the same subsidized service to the target audience for lower donation sizes. Once such options become available, donors will begin to migrate to the new charity forcing the original to tighten expenses or lose support. Unfortunately, government funded charitable operations often are not exposed to this competition of charities, and continue to see their overhead costs rise until they are extremely inefficient at providing charitable service. An improvement to this system would be to take out bids for providing the desired service, which would include penalties if the service was provided to people who do not fit the criteria or refused to those who do.
The other major issue with government funded charities is that government often abuses its ability to use force to prevent competition. An example of this would be the Post Office. The government prevents by force any organization providing first class mail service other than the US Postal Service. This means that even if there existed a company capable of providing universal mail delivery services for a price far lower than the US postal service, they would be prevented by the force of the US Government from doing so. Morally, I believe the use of force is justified to protect the life, liberty, and property of another person from misuse against their permission by another person. This criteria cannot include prohibiting the delivery of envelopes by a company in competition to the US government. There may exist a legitimate need for a government run delivery service to process government business related deliveries. If such a delivery service wishes to process the delivery of private envelopes though, it ought to compete on the free market against other providers of such services. Perhaps there exist one or more companies that can be contracted to provide the security, reliability, and universality demanded by the US government for its own business. If so, there may be no need for a government run delivery service.
This second separation from the market is the more worrisome of the two. In the case of services like universal healthcare, separation of payer and beneficiary is actually the point. Those supporting such a measure WANT to finance the care of others, even if the total costs increase as a result. There is danger in costs skyrocketing out of control, but as some validly point out US costs are already far higher than they should be due to lack of preventative care. Allowing such care to be obtained for no cost to the recipient could well drive down costs. The scary part comes from the use of force to prevent seeking private care. If the government provided service does not have to compete with services provided by other services for quality, there is no competitive pressure to maintain high quality. While there is no inherent reason why a monopoly imposed by force CANNOT provide consistently high quality, there is also no alternative if it fails to do so. Since all services tend to have poor spots in areas, there is no way of knowing whether your service is lagging because a certain area cannot be done better or because there is no competition showing how it can be done better.
So long as a government obtains its resources in a moral manner (though payments by taxpayers service fee payers who intentionally request the services it is providing), there is no moral reason why it cannot provide any type of service its owners (voting citizens) choose to provide. The voters should demand that overhead costs of providing a charitable service are kept to a minimal level while still providing the quality of service for the target group desired, and get clear updates regarding the overhead amount paid. Government should NEVER use force to impose anticompetitive restrictions that are not based on its own property rights, or the rights of others to life, liberty, and property.
Recent Comments
Darius T., Atanamis, Darius T., Atanamis, Lew [...]
Atanamis, Darius T., Jew, thainamu
Colin, steve
Colin, cchrisr, Atanamis, cchrisr, Atanamis [...]
thainamu, Sharon, Atanamis, thainamu, cchrisr [...]
Lew, Dave in Colorado, Montana Man, ChadTudor, Lew [...]
Chris A, Colin, Thainamu, Colin, thainamu
Ardith, Atanamis, Colin, gurr8, Ornot the Majestic [...]