Wednesday, July 6, 2011

Government Industry vs Private Industry

Which is better? Government-run organizations, or private organizations? Let's look at some pros and cons of each.

Government industry pros:

Not-for-profit -> lower cost.*
Bureaucrats too lazy and unmotivated to bother trying to screw you.

Government industry cons:

Lazy-ass incompetent employees -> less efficient -> higher cost.*
Incompetent or corrupt employees have too much job security.
Less competition -> higher cost
Increases size of budget -> Justifies higher taxes and more data mining -> leads to an even bigger and more powerful government.
Lack of internal auditing. Money disappears into a black hole. Poorly managed.

Private industry pros:

More competent employees.
Incompetent of corrupt employees easily terminated - > lower cost**
Separation of powers -> less money and data going to the government
More competition -> lower cost.
Very efficiently managed -> lower cost

Private industry cons:

For profit -> often out to screw you -> higher cost**
Sacrifice the long-term welfare of their employees and clients for short-term profitability.
Sacrifice environmental sustainability for short-term profitability.
Very efficiently managed + Lack of government oversight + lax regulations = very effective at profiting off your back.

Private industry in cahoots with the government:

You are screwed and on your own. 

The verdict: Either way we are screwed. Pick your poison.

Possible alternative: A member-run cooperative organization?

* Notice the theoretical contradiction.
** Notice yet another theoretical contradiction.

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