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Why can't the government compete with private business? Competition is good. And certainly a better use of taxpayer money than just massively funding private co
by Twixes 6y ago
Why can't the government compete with private business? Competition is good. And certainly a better use of taxpayer money than just massively funding private corporations (vide Lockheed, Boeing)
- perilunar 6y agoGovernments doesn't have to make a profit, so they can undercut private business and distort markets. Governments should not intervene in the market except in cases of market failure (and they shouldn't be funding private corporations at all).
- Twixes 6y agoThat depends on the market. There are valid reasons for states to get involved in business: * some markets can never be free due to their nature (their services are not negotiable): e.g. medical care, pharmaceuticals * some markets just create monopolies or else are horribly inefficient: e.g. metropolitan transportation, railways * sometimes it's better that the government-funded service doesn't need to make a profit, because that way it can serve more of the government's people better: e.g. housing, education, public transport in general * even stronger influence can be exerted on other states if you control powerful companies operating there: e.g. PRC's approach
- perilunar 6y agoWell I think that some of that falls generally under market 'failure', so I don't necessarily disagree. But when the market is working the government should butt out.