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I don't know about full-on nationalization, but we have plenty of evidence to show the incentives for publicly-owned for-profit companies whose primary customer
by V_Terranova_Jr 2y ago
I don't know about full-on nationalization, but we have plenty of evidence to show the incentives for publicly-owned for-profit companies whose primary customer is the Government are strongly misaligned with the non-economic interests of the public.
I don't have a pat solution to this, but for example, Boeing, Lockheed Martin, Northrop Grumman, and Raytheon have little reason to improve when they have a captive customer. Raytheon recently agreed to pay ~$1B in penalties for illegal exploitation of their position and the market doesn't care: https://www.justice.gov/opa/pr/raytheon-company-pay-over-950m-connection-defective-pricing-foreign-bribery-and-export https://www.justice.gov/opa/pr/raytheon-company-pay-over-950...
Pure capitalism for these kinds of uniquely critical products and services doesn't seem like the right answer.
- stego-tech 2y agoExcellent comment. As someone who spent time in the MIC, I’m always glad to see others make the same sort of callouts about exploitation of the Government by entities unaligned with and detached from the goals of the people. Extremes rarely work; rational compromise is what moves the needle forward, bit by bit.