Why public sector (gov't) will team up with private sector?

Question

Why do many governments see parternships with the private sector as beneficial??

I can only think of...because the private sector companies can run businesses more effectively/efficiently, and because privatization creates competition..so the GDP will rise in that specific category because there will be more companies all trying to out-do each other.

Answer 1

Because it's profitable to do so.

It's profitable for the private sector, because it eliminates competition.

It's profitable for the public sector because companies that like being monopolies will show their gratitude in the form of campaign contributions.

Answer 2

Because the public sector does not make money, they just spend it. Only the private sector creates capital. The public sector merely redistributes it. Obviously, if there is not a critical mass of new capital being generated, all the government programs in the world won't do any good.
Government programs are process orientated, whereas in the private sector, it's all about results. Consequently, the private sector is also much more responsive to changes in the market, and can profit from them. Most public sector programs don't care at all about the actual product they are underwriting or it's costs, they just want the tax revenue, publicity and votes. That's why they like it.
Major companies don't mind the inevitable added costs and regulations that come with Government participation, because these extra costs serve to keep out the upstart competition. Added expenses will hurt the little guy more than the multinational, so as a result, public sector money tends to gravitate to the big guys. That's why they like it too.

Answer 3

It is beacuse of the delusion that the free market can provide things it can't. There is no benefit in having a large private sector. GDP says nothing about how people really feel, only how much money some people make...

Answer 4

Because they don't have enough money.