Can someone tell me why we should trust in the private sector so much?

Question

This is a follow-up of sorts from a previous question I asked.

It seems that this society has placed tremendous faith in the private sector to get things done. Examples include our health care system, and possibly our Social Security. My question is why is there so much faith in the private sector after repeated injustices (ie Enron, S&L scandals, Halliburton, monopolies, price fixing, etc)?

I realize that the government has erred (Katrina, Social security), but it is for the people, by the people. Why shouldn't we place more emphasis on an effective government? We can vote people in and out regularly. We cannot do the same in the private sector.

I want to hear thought and opinions on this. Please keep this respectful and provide serious answers please!!! Thanks!

Vyperjee-
My point is that monopolies create problems for the average American, by fixing prices.
Can you describe where the private sector actually actively looks out for the underprivileged individual?

Grips-
When has the private sector? They both make mistakes, but why do people tend to justify the private sector mistakes and decry the government's?

Free-
Intreresting take on that, but I noticed that you didn't mention any failures of the private sector... The government as the ultimate monopoly seems frightening, but it is the only monopoly that I know that can be turned over evey 2-4 years (depending on the branch), barring the judicial branch.

Can the same be said in the private sector?

Jacob-
Thank you! However, isn't the price increse the result of greedy insurance executives (private sector). I agree with most of what you said, but I feel that you assume that those running these organizations are inherently good and that they would perform this service without being paid, which I believe is not true. It seems that the private sector only operates for profit, not for teh good of the people, which is what the government operates for. Yes or no?

Apple-
I take it that you see it as a toss-up? Could you elaborate more please?

Answer 1

The private sector has done more for the underprivileged than the government can dream of, just in smaller doses that don't make the news. Let us not forget that big business is behind a great deal of our misery. I will leave the worse case "gas" alone because that is too easy. Take seat belt laws for instance, when has the government ever stepped up and acted in our best interests. I would be willing to bet that ins. companies got together and decided they were paying too much in personal injury cases and pushed something thru to help them. Plus the government gets a little ticket revenue on the backside. They cant help because they cant relate, how many of them do you think have to cut corners to buy next weeks groceries, or have had to tell one of their children they cant have something because they couldn't afford it!! The government screws up everything it touches, yeah we have the power to vote them out but when do you ever hear about it happening. They survive by the people remaining "sheep" and doing as we are told i promise if we starting pushing policy that promoted our welfare and not big business "campaign contributors" we would realize how powerless we are!!

Answer 2

First and foremost, it's about freedom.
In the private sector I have choices. Let's take Social Security as an example. In the private sector I have thousands of choices of how to save for my retirement (stocks, bonds, gold, money managers, real estate, hide it under my mattress, etc.). I can even choose not to save any money and work until the day I day. Social Security steals my freedom because it steals my money and forces it into a retirement program I have no control over.

You claim you are against monopolies, but government is the ultimate monopoly. Worse yet, it is a monopoly with guns and jails. So not only do they fix prices, but they destroy your life and throw you in jail if you don't buy their product. If I don't want Social Security and want to provide for my own retirement, well that's just too bad, the government puts a gun to my head and forces me to participate. In what universe does that sound like a good idea? How does that reflect the principles of freedom and liberty enshrined in the Constitution? Where in the Constitution does it say I have the right to have my money stolen for a future retirement that I may not want, or live to see?

It's all about freedom.


Yes, some companies in the private sector have problems. However, it all comes back to freedom. If Wal-Mart screws me, I immediately go to Target. I don't have to wait 2 to 4 years and hope that I can convince 50% of my fellow citizens to vote with me. When the government screws me, what do I do? Social Security is a failure, it hasn't been fixed in 70 years. The tax code is a disaster and hasn't been fixed in decades. FEMA screwed up after Katrina, how long do we have to wait (while still paying for it) for it to be fixed? I'm still paying for every single F_ed up government program whether it is fixed or not. If Wal-Mart screws me, they loose my money immediately and I get better service immediately by going somewhere else. Monopolies are ALWAYS a bad idea, and as I already said, the government is the ultimate monopoly (don't forget the guns and jails if you don't play their game).

Answer 3

Things like Enron and the S&L crisis are directly attributable to missteps of the govenment regulators. I don't know what you have been told about Halliburton but the number one employer of Halliburton was Bill Clinton.

No one is for NO government regulation but it needs to be extremely limited.

Capitalism and the free enterpirse system are the best and most effective systems bar none. They do not redistribute wealth, they generate it. The health care field is an excellent example.

Before the govenment starting "fixing it" by setting up HMO's and the like (thank you Ted Kennedy) let me tell you what health care was like in America.

You went to the doctor when you needed to. You paid a fair, market based price right when you received service. Doctors often set up payment plans for needy patients who had limited means (like my dad).

The Doctor would only prescribe medications you really needed and you would pay for them yourself. The cost was high but not that high.

The only insurance you had was hospitalization, which covered any accident or serious ailment that required a hospital stay. There was some suplemental insurance that even paid for lab work and medications (like Rider J).

Back then, you had a personal rapport with your family doctor and he even made house calls if you were too sick to go to the office.

The waiting room was not crowded and you spent as much time with the doctor as you needed.

Now, what government run health care plan can beat that?

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Answer 4

If the private sector produces a service or product that nobody wants, none of it sells and the company that produced it goes out of business. If government produces a service or product that nobody wants it can use its monopoly on the legal use of force to jail or kill everybody who won't "buy" the product (taxes). Where government power is much, much greater than the people's you get something like Burma or Zimbabwe.

"Government big enough to give you everything you want is a government big enough to take from you everything you have." (Gerald Ford)

Answer 5

Free markets help keep everyone on their toes. Would people in New Orleans pay over three million dollars for load of ice. FEMA ran a very good ship by having more regional control till republicans blanked it up.
Remember it was Bill Clinton that let the oil companies conglomerate again to help his wife win Senate Seat. Both Bush and Clinton need to be relegate to history with zero influence. All the examples you cite are enforcement screw-ups.
SS was meant as safety net for people and prices and tool to open up jobs. All it is today is safety net for people.

Answer 6

Well I think that the private sector does certain things better than the government but not all.

Answer 7

Monopolies are a completely different subject.

Competition works. It's as simple as that. If a company wants to stay in the game, so to speak, they need to be competitive, which will make them better.

Answer 8

What's the alternative----trust government? When have they ever brought in anything on-schedule and under budget?