Monday, May 09, 2011

Private sector vs. government

Don Boudreaux pretty well sums it up:
Plans in private markets are decentralized; government plans are centralized.  Private-market planners risk their own money; government planners risk other-people’s money.  Plans in private markets face constant competition from rival private plans; government plans are monopolies which face no such competition.  This competition prevents plans in private markets from growing in scope to outstrip the knowledge and capacities of persons who make and carry them out.  No such competitive check constrains the scope of government plans. 
Given these realities, why should the government be tasked with anything that can be performed by the private sector?

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