Assume we have some huge product or service we want to make available to the US population that is hungry and eager to buy it. Let's assume it's a service rather than a product to make it easier to discuss. Since almost everyone wants it we could look to government to provide the service, charging a fee and using tax revenues to insure the costs are covered. We all know that Government provides more services than any non-Government Big Business. Could this be the most efficient way to achieve the highest quality service for the US population or could Private Enterprise provide a higher quality service more efficiently at a lower price? What do you think?
I am so very sorry, because this is a trick question. The results are in. This Christmas the Private Enterprises like Fed-Ex and UPS delivered 1.5+ Billion packages. They together with Private Enterprise retailers led by Amazon did what the United States Postal Services could not do even though they were the first to deliver packages. They did this offering Next Day Delivery. Even some packages shipped Christmas Eve were delivered Christmas Day by volunteer workers. How many Postal Workers volunteered to work on Christmas Day?
Private Enterprise will always provide a higher quality service at a lower price. So when does it make sense to have Government provide a service? Well how about landing a man on the moon and returning him to Earth. No Private Enterprise in the 1960s would have taken on this mission. In the short term this project lost a lot of money with little hope of a return, much less a profit. However, today space travel innovation and missions are performed by Private Enterprise and the Government is one of the many customers for these Private Enterprise services.
The US Government is a huge and very important business. It needs to balance its budget and in this process having services performed by Private Enterprises evaluated as an alternative to Government employees should be performed.