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Drastically reduced out of pocket costs from a lack of profit motive, and the ability to leverage this purchasing power to negotiate further savings with other
by jim-jim-jim 4y ago
Drastically reduced out of pocket costs from a lack of profit motive, and the ability to leverage this purchasing power to negotiate further savings with other participants in the supply chain.
It's a perfectly reasonable avenue to explore in core productive industries like energy and food.
- twoodfin 4y agoThe US military doesn’t have a profit motive, has massive leverage over most of its key suppliers, and yet I do not think anyone would list “cost control” among its virtues.
- antifa 4y agoIf it did, we'd save a lot of money purchasing tanks, guns, F-35s, drones, etc. from China.
- astrange 4y agoThe profit motive is what causes lower costs; where else would the margin come from? And it's also nice to not own PG&E considering how much debt they're in. On the other hand, we don't let Medicare negotiate drug prices and the official policy is to just give them whatever they want. We rarely use our monopsony power as is. (This is finally changing as part of the IRA.)