SHOULD GOVERNMENT BE RUN LIKE A BUSINESS?

Do we really need a businessman in politics? Do we really want a businessman in politics? Should government be run like a business? These are questions and comments that I see thrown around all of the time. Let’s take a moment to look at this.

Let me begin with just a short lesson in economics, but let me be clear, I am not an economist. What I am is an observant person who has spent years studying the world around me and confirming some of my observations with experts on various subjects.

In a free market, the natural law of supply and demand will ultimately dictate price and, given sufficient competition, other things like product features and product quality. I think most businessman would admit to a desire to NOT have any competition. This scenario would leave them (call them company A) free to charge what they want for their product AND without incentive or investment in making their product better. A perfect world, right? Well, eventually, someone (call them company B) will notice the huge profits and begin a competing business. In order to compete, the new business will make a cheaper product or a better one, or both. The result is that the original company (A) will need to “ante up” with a cheaper/better product. Through constant iteration on both companies’ parts, this process ultimately yields the best product for the cheapest price for we consumers. Without competition, we’re forced to endure poor products at an expensive cost. The primary job of any businessman is to manage return-on-investment, or ROI. In other words, how much to invest and what will be the resulting yield or profit. Sometimes we call this CAPITALISM and you can see that we consumers are the beneficiaries of it (cheapest/best product).

Now that we understand a little of how the free market system works, let’s take a look at how a government system works. It’s actually quite simple; government operates without competition. There is no “company B” in a government system. And recall from the previous description what we consumers are faced with when there is no company B? That’s right…a poor (probably worse than that) product at an expensive (and ever-increasing) price. Government has no competition! Government has no opposing entity that would force it to provide good/cheap products. Again, competition in the marketplace is GOOD for consumers and it makes for a good, healthy, stable businesses. Without competition, a business (in this case, government) becomes bloated, unhealthy and unresponsive to the customer (taxpayer). The only force government has that works in opposition and thereby attempting to keep it healthy is the taxpayer DEMANDING it be efficient. Unfortunately, the only power the taxpayer has available to force government to be lean and healthy is the ballot box. It’s the threat of being replaced that keeps politicians “honest”.

Maybe you heard the term “crony capitalism”. In the interest of brevity, I’ll mostly leave this for another discussion. However, let’s just say it’s the worst of both worlds! Basically, it uses the power of the government to “sell” favors ( or favorable laws) to company A and/or company B for personal profit. This is why companies or industries employ lobbyists. More later…..

So finally, the question of “do we want a businessman to run the government more like a business”? I do not think this is a vital qualification and I don’t think it’s the right objective. What’s most important is that we elect people that 1) understand the principles discussed above, and 2) have the morals to NOT use the government for personal gain. I also think it’s vital that we taxpayers DEMAND a lean government, because after-all, WE are the only opposing force on the government.

You know where I stand! You have a choice on May 15th. Be that opposing force!