Tuesday, May 19, 2009

"Why Governments Can't Run a Business"

http://online.wsj.com/article/SB124277530070436823.html

Government has been expanding recently, and I personally have not been able to find many voices talking about why it could possibly be a bad thing. What caught my eye in this particular piece was how John Gordon was able to elquently discourse on so many subtle points. I found that I was actually familiar with a small number of the arguments he had to make, such as "Governments are run by politicians," but mostly Gordon managed to think the issue through at a deeper level than I have.
I really liked Gordon's comments on how the government has to use taxpayer money. What defines success and the source of resources are completely different when the government and a profit-driven company are compared. A government concerned about courting votes and driven along by set political ideology will run a corporation reflecting those concerns in the way it operates. It's not a recipe for success.
My favorite point is undoubtedly the last. A government is in charge of supervising itself. The US government does not have a great fiscal track record, so it's unclear why government replacing knowledgeable businesspersons is a good idea.

1 comment:

  1. Solid article and blog Blake. I would take issue with a few comments though, especially the last section. I disagree with the notion that government is in charge of supervising itself. This is the role that the media and the voters play. It is our job to pay attention and hold these people accountable for their actions. Unlike business which is much more unregulated, hence our current crisis in the banking industry. I agree that the government has little say in who runs a business unless the government has assumed ownership of said business via bailouts! Great first blog.

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