Why Government Can't Run a Business - New England Patriots Forums

***patsfan13*** · 05-20-2009, 03:31 PM

Why Government Can't Run a Business - WSJ.com

Great article explaining why the government is doomed to fail in it's take over of the banks auto industry and medical care....

Quote:

Or take Medicare. Other than the source of its premiums, Medicare is no different, economically, than a regular health-insurance company. But unlike, say, UnitedHealthcare, it is a bureaucracy-beclotted nightmare, riven with waste and fraud. Last year the Government Accountability Office estimated that no less than one-third of all Medicare disbursements for durable medical equipment, such as wheelchairs and hospital beds, were improper or fraudulent. Medicare was so lax in its oversight that it was approving orthopedic shoes for amputees.

These examples are not aberrations; they are typical of how governments run enterprises. There are a number of reasons why this is inherently so. Among them are:

The reasons will ring true for anyone with any common sense.

ljuneau · 05-20-2009, 03:56 PM

Awesome article, thanks for posting this.

***patsfan13*** · 05-20-2009, 03:57 PM

The details as to the reasons that government will f'up a business are spot on.

***patsfan13*** · 05-20-2009, 04:02 PM

Quote:

1) Governments are run by politicians, not businessmen. Politicians can only make political decisions, not economic ones. They are, after all, first and foremost in the re-election business.

Politicians need headlines

Governments use other people's money

Government does not tolerate competition

Government enterprises are almost always monopolies and thus do not face competition at all

Successful corporations are run by benevolent despots

Government is regulated by government

Great stuff everyone should read this article.

PatsFanInVa · 05-20-2009, 08:46 PM

Any insights on why, judging by recent events, businesses can't run a business? After all, business is meant to be the WSJ's forte.

PFnV

***patsfan13*** · 05-20-2009, 08:58 PM

Sometimes businesses fail, the gov just keeps throwing money down a rathole...

PatsFanInVa · 05-20-2009, 10:35 PM

Something to get your head around: There would be no economy if government didn't essentially spot the financial sector for 8 months (and counting) like your broke-azz friend who can't afford his burrito at Taco Bell.

I don't conclude that because the Obama administration is continuing the policy. I conclude it because the Bush administration -- market purists to the core -- initiated that policy.

In fact, that is pretty much verbatim what one of the Wall Street kings of deregulated capitalism -- Hank Paulson -- concluded, despite himself.

And now WSJ wants to explain alllll about big inept government blah blah blah.

No single business has any obligation or interest in the public good. The theory is that the mechanism of the market makes all our selfishness and greed cancel out. That is not the case. All our selfishness and greed, in reality, also results in there not being any interest by any party in the system, in inherent system risk itself. In fact, in plenty of situations you can work it so that the collapse of something you are in contact with that will cascade outward from there will make you money (for example through the swaps market or shortselling.)

And these mechanisms were introduced by who, government? No, by businesses. The business community screwed itself nine ways from sunday, and took us all along for the ride.

Well guess what? When your behavior threatens the very existence of the economy, and you're the recipient of trillions in government largesse, you don't get to complain about how inept government is anymore, at least until you establish that your own grasp of business is based on something more sophisticated and functional than the Magic 8-ball.

PFnV

***patsfan13*** · 05-21-2009, 08:06 AM

We survied the banking crisis of the 80's I don't buy the bailout bs from either Bush or Obama. I would also poiont out the problem was created in large part by gov regulations and manipulation of the market.

***tanked_as_usual*** · 05-21-2009, 08:14 AM

Quote:

Originally Posted by PatsFanInVa

Something to get your head around: There would be no economy if government didn't essentially spot the financial sector for 8 months (and counting) like your broke-azz friend who can't afford his burrito at Taco Bell.

PFnV

considering the credit mess we are currently in was sponsored by barney frank and maxine waters, I find it fitting that the government is footing the bill

without the subprime mess, there may have been an economic downturn, but we would be in a much better place right now than we are

it almost seems scripted

wistahpatsfan · 05-21-2009, 08:21 AM

Quote:

Originally Posted by tanked_as_usual

considering the credit mess we are currently in was sponsored by barney frank and maxine waters, I find it fitting that the government is footing the bill

without the subprime mess, there may have been an economic downturn, but we would be in a much better place right now than we are

it almost seems scripted

I think the government set yet another bad prescedent by bailing out the banks and financials that we will never recover from. Frank and Waters acted wrongly and are still unrepentant, it's true. But the mess runs much deeper than them. The responsibility belongs to the whole government for allowing this to happen, and ultimately on the People for re-electing these clowns over and over, sending tacit approval for the status quo. We're such a politically passive and lazy country. We do what we're told by the TV. "Ron Paul's a wackjob"..."Ralph Nader's un-American"..."Steve Kicinich is too goofy-looking"..."We have a two party system" (that's my favorite lie ever).