Two Different Worlds: The Public and Private Sectors

[Geee]

American Spectator:

Most everyone realizes there are differences between the economy's public and private sectors. However, they may not appreciate just how great the difference is.

We have an ongoing debate about the size of government, and by implication the size of the private sector. When choices are made about what responsibilities and functions to assign to the government, a crucial consideration should be the relative competencies of the private vs. the public sectors.

Consider, for example, differences in how the two sectors take advantage of advances in technology. In the private sector old products become better and cheaper, and new products flow with increasing frequency.

My 2009 car is the same make and body style of a 1990 one I owned years ago. It is significantly better in every way -- more powerful, 25 percent better gas mileage, better brakes, more safety features, better handling, and more fun. The application of numerous breakthroughs in technology would be too numerous to count. The inflation-adjusted sticker price has actually declined. I have seen similar improvements in virtually every consumer product I buy and use.

The private sector's products all around us -- food, shelter, clothing, automobiles, home appliances, entertainment, for example. The public sector's products include defense, the justice system, roads and highways, public schools, income redistribution (welfare), laws, and regulations.