‘Not because of the profit motive’

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1:04 PM Friday, November 20, 2009

The common belief among conservatives is that government is corrupt and inefficient, and private enterprise can always do a better job of providing a given service or product. This is partially based on one of the tenets of capitalist theory that says the profit motive will inspire better productivity and efficiency, and when forced to compete for consumers’ business, the most efficient and cost-effective company will win the day.

On the flip side, government does not have to compete with other entities and does not have the profit motive to inspire innovation and efficiency, (and) so — by its very nature — will pay $1,000 for toilet seats and waste most every dollar we, the taxpayers, contribute to its coffers.

All this sounds very plausible, but is not always true. In fact, most corruption and inefficiency that is blamed on government originates from the private sector.

A few examples:

The now famous $1,000 toilet seats weren’t manufactured by government; they were produced by the private sector. The private sector overcharged the government. Maybe the government bought these from an unscrupulous supplier who had greased the palms of a bureaucrat, but this corruption couldn’t have occurred without someone in the private sector also being corrupt.

Private sector lobbyists, who serve the interests of their corporate masters, are well-known for buying politicians to do their bidding. From the oil companies to the insurance companies, they all do it and it serves their purposes well. They usually get their way, and their purposes are mostly contrary to the common good of the American people. Again, this corruption could not occur without segments of the private sector being greedy and corrupt.

By far, the most glaring example of private sector/capitalist corruption is the near-collapse of our entire financial system, perpetrated by the Wall Street crowd and the “too-big-to-fail” financial services industry. Because of their greed and utter disregard for the consequences of their actions, our country was taken to the very precipice of complete financial ruin. The only entity that could rescue them was government ... and by government, I mean — you and me, the taxpayers.

Now, as a way of expressing their gratitude for us rescuing them, they are handing out multi-million dollar bonuses to the very people who caused this disaster.

I’m not trying to say government isn’t sometimes corrupt or inefficient — too often it is both — but government also has many competent and professional employees. When someone tells you that government can’t do anything right, remind them of the fireman, the policeman, the soldier, the FBI agent, the forest ranger, the food inspector, the teacher, the prosecutor or the judge. All these people are government employees. They do their job, and they do it well, not because of the profit motive, but because they love their community and their country, and take pride in serving both.

Don Spencer

Hamilton

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