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A problem with analysis like this is that these problems are in no way limited to the US or the public sector. All Western countries have these problems to diff
by socialdemocrat 5y ago
A problem with analysis like this is that these problems are in no way limited to the US or the public sector. All Western countries have these problems to different degrees and it also exists within private enterprise which do not face the same problems outlined here.
Boeing e.g. had been terrible at making pretty much anything from planes to space rockets. Everything is delayed.
I suspect there are deeper more fundamental problems. E.g. how companies are managed and organized. Companies used to be far more engineering oriented. Today they are very sales and MBA oriented. There is also way more outsourcing and fragmentation of business. Business used to be far more integrated.
- stadium 5y agoValue extraction may be part of the problem. Competition would take care of a lot of inefficient private sector businesses. Duo/Mono-polistic profit margins leave a lot of room for waste. Resource constraints breed innovation. Boeing for example competes with Airbus on commercial planes, that's about it. And SpaceX is eating into their profit margins on rockets. They need to innovate to keep up with SpaceX rockets, while the 737-max fiasco is a great illustration of waste and inefficiency on commercial airplanes. If they had to be more competitive to survive, they may not have cut so many corners.