Business or Government : A simple question unless you’re a liberal politician.

Currently there is a debate between which organization can serve Americans better: Business or Government.  The government knows that if the focus is on this central question, they will they will lose the debate.  In order to distract us, they have to exploit class divisions, and engage in gross intellectual dishonesty.  When we determine the incentives and rules of the two organizations, the choice (answer) is clear.

A business is an organization designed to make a profit; success is realized through economic efficiency.  In contrast, government is an organization, where elected officials are tasked with regulation; success is not measured in efficacy or efficiency, but on re-election.  So, businesses compete for customers.  Elected officials compete for votes.  Businesses have an incentive to please the customer and crush competition. Elected officials have an incentive to vote their constituency a piece of the treasury, and thereby, tie their re-election to the goodies they deliver to voters.  Similarly, both organizations desire a monopoly, and both organizations will only serve to perpetuate their own success. So, the question is not about the motives of the organization, but rather, the rules that govern these organizations.  Since government does not create wealth (only redistributes it), they are purely based on having people rely on them for their livelihood.  Whether they can achieve this goals through employing voters, or just paying them; there is no incentive for them to provide a better product/service.  Couple this, with the fact that when they do compete; they are the player as well as the referee. Their incentive is not meeting the customer’s needs; it is about controlling the market.  In sharp contrast, a business cannot survive without providing the best service or product for their customers. Their incentive is to please the customer, and since they don’t make the rules; they cannot control the market.  Business cannot survive if they don’t serve the customer. The choice is clear.

So, why does government continue to engage in this debate? The only way is for them to win is to demonize profit; the foundation of business.  The government wants us to get stuck on stupid by engaging in class warfare and perpetuating the illogical, populist characterization of: Main Street Vs Wall Street. The truth is Wall Street is investing for Main Street; one cannot exist without the other. The truth is neither one of the organizations are altruistic. However, they are governed by different rules. These rules provide the answer to the central question to which organization will serve us better?

The answer: the enemies of competition are monopolies.  Businesses have to compete, governments monopolize.  Again, the choice is clear.