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Just one data point: I’ve done government contracts (state level), worked for a private company, a public company, and a private company that went public. There
by jonhohle 2y ago
Just one data point: I’ve done government contracts (state level), worked for a private company, a public company, and a private company that went public. There was nothing more inefficient than state level government.
They were paying $300/hr for a fresh out of college grad working on their first project. The money was allocated, so they didn’t care how much it cost. Anyone with any motivation left employment by the state and became a contractor for 5-10x what their salary was when working for the state. It was disgusting.
Meanwhile in the private sector, companies or deoartments that don’t make money cease to exist after a while. The government can bankroll a failed department with negative outcomes to their purpose indefinitely (and then get more money for to fix their own broken outcomes).
I’m not proposing solutions, and I have recently worked with entrenched utility monopolies with the same segment capture behave the same way. There are, however, significantly more efficient private companies operating at larger scale than some governments.