“Private Enterprise vs Government Competition”

Thoughts on a Free Market Economy…

“Private Enterprise vs Government Competition”
By Phyllis Hunsinger
February 1, 2017

Private enterprise is defined as a business or industry that is managed by independent companies or private individuals rather than by the state. The money invested in private enterprise is private money, money risked by individuals who stand to make money if the enterprise is successful or stand to lose their investment should the enterprise be unsuccessful.

Government makes no money nor has the means of gaining any funds beyond what is taken from the citizens through various taxation policies. The elected government officials devise methods of securing funding through taxation and then are expected to fund the government’s responsibility to protect individual rights and provide for the safety of its citizens.

The problem arises when governments reach beyond the scope of their defined purposes. Far too often elected officials want to tackle some perceived need or respond to some citizens’ group request and the result is an overreach of government. This overreach of government is seen at the local, state, and national level. An example at a local level may be a city run events center, recreation center, concert hall, low-income housing, etc.

When governments compete with private enterprise, the playing field is skewed. Since government operates on money confiscated from its citizens through taxation, the government actually has “no skin in the game.” Government can choose to spend money on projects that will likely be an unprofitable venture because after all, it is not their money. Government employees rarely have the expertise to research, design, or manage private businesses and their motivation for making the business profitable is minimal.

Private enterprise, on the other hand, is more discerning about the projects for which their private funds are being invested. Private enterprise will not invest in projects unless the research indicates a likelihood of a return of profit. Private enterprise hires individuals with the knowledge and expertise to research, design, and manage the operation, thus increasing the chances of success.

In society there is a need for government and for private enterprise. What is exceedingly important is to know the purpose for each activity and to hold elected government officials to their level of responsibility.

https://www.free-dom.co.us, Phyllis Hunsinger © 2013 All Rights Reserved

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3 Comments on "“Private Enterprise vs Government Competition”"

  • Wallace says

    Very well written to expose that government is not the answer, and should stay out of some things we

  • Wallace says

    Can I share this to Facebook?

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