3 ms·

Wild red herring fallacy, I’ll bite. The private sector is indeed filled with lots of inefficiencies, but due to the profit motive and presence of competition,

Wild red herring fallacy, I’ll bite. The private sector is indeed filled with lots of inefficiencies, but due to the profit motive and presence of competition, there’s massive incentives to correct those inefficiencies slowly over time. You'll make more profit doing so! Hence, the private sector is constantly self correcting itself and becoming more efficient via creative destruction. You can just look at the numbers, even the Chinese Communist Party understand this. Turns out the profit motive combined with competitive instincts of humans results in a consistently greater good. Not sure you’re aware, but the government doesn’t do that. Hence why the US is massively indebted. Unfortunately the US debtors aren’t doing so great these days so it can’t continue even at current rates. Instead of DOGE they should have named it “The department of not finding the level of US debt that leads to currency debasement and collapse.” I never thought I’d need to explain the elementary school 101 of why communism is bad and why debt is not endless on HN but apparently this place is turning into Reddit.

rassimmoc 2y ago
>>The private sector is indeed filled with lots of inefficiencies, but due to the profit motive and presence of competition, there’s massive incentives to correct those inefficiencies slowly over time. You'll make more profit doing so! Instead of correcting inefficiencies it's more profitable for private sector to: 1. merge/acquire competition, create monopoly, 2. lobby government for monopoly status (ISPs)/protection from competition with tarrifs (automakers)/... 3. sue competition out of business 4. aggressively use patents,... Also found it funny that someone starts post with 'red herring' and ends with 'educating' parent post about communism :D
- pembrook 2y ago
  When stating "all profit is waste" you've officially changed the topic of discussion to communism. Basic logic would dictate a response addressing that head-on is not a red herring.
  - rassimmoc 2y ago
    I did not understand his post as 'all profit is waste', this is what he said: >>The amount of resources used to feed profit alone are a huge waste. I believe that this can sometimes be true. For example, lets say that CEO want to raise profits by 20% by end of fiscal year and uses 50% more resources for that compared to current resource/profit use. This might be good idea for CEO, if his bonus is tied to profit, but for company it might be better to develop business that is going to bring more profit / resource spent a few years down the line. I think both government and private sector have waste. It's just that reason for waste is different, and it doesn't make sense to compere them directly. Also, combating waste should be done differently in private vs public sector.
deleted 2y ago
[deleted]
sixothree 2y ago
This is simple. Look at Medicare Advantage plans versus traditional Medicare. The same amount of care costs 23% _extra_ using Medicare Advantage. How is this more efficient? It's not.

rassimmoc 2y ago

>>The private sector is indeed filled with lots of inefficiencies, but due to the profit motive and presence of competition, there’s massive incentives to correct those inefficiencies slowly over time. You'll make more profit doing so! Instead of correcting inefficiencies it's more profitable for private sector to: 1. merge/acquire competition, create monopoly, 2. lobby government for monopoly status (ISPs)/protection from competition with tarrifs (automakers)/... 3. sue competition out of business 4. aggressively use patents,... Also found it funny that someone starts post with 'red herring' and ends with 'educating' parent post about communism :D

pembrook 2y ago
When stating "all profit is waste" you've officially changed the topic of discussion to communism. Basic logic would dictate a response addressing that head-on is not a red herring.
- rassimmoc 2y ago
  I did not understand his post as 'all profit is waste', this is what he said: >>The amount of resources used to feed profit alone are a huge waste. I believe that this can sometimes be true. For example, lets say that CEO want to raise profits by 20% by end of fiscal year and uses 50% more resources for that compared to current resource/profit use. This might be good idea for CEO, if his bonus is tied to profit, but for company it might be better to develop business that is going to bring more profit / resource spent a few years down the line. I think both government and private sector have waste. It's just that reason for waste is different, and it doesn't make sense to compere them directly. Also, combating waste should be done differently in private vs public sector.

deleted 2y ago

[deleted]

sixothree 2y ago

This is simple. Look at Medicare Advantage plans versus traditional Medicare. The same amount of care costs 23% _extra_ using Medicare Advantage. How is this more efficient? It's not.