Things government does well that private enterprise can't or won't do

Want a list of things done by government better than by private enterprise? Check this post out.

There are a lot of things that private enterprise does better than government, but they all are based on a private company that chooses a market to serve and focuses on that market, ignoring everyone else. They are also things that do not require spending money today for long-term uncertain returns in the distant future. That's why government funds basic science which is published without patent, and private enterprise designs and builds patented products.

Go read the article at Firedoglake. Things that would never have been built by private enterprise include nuclear power, Boulder Dam (for power, flood control and irrigation), computers generally (developed for the federal census and then social security programs), space rockets and satellites, microcomputers (developed first for the use of the space program since it cost too much to put vacuum tubes into space), jet aircraft, supersonic aircraft, the interstate highway system, the Internet, and myriad other things. Each of those was initiated and provided early funding by the government.

At some point lots of it was spun off from the government programs into private enterprise, but investors would never have placed their money in any of those items if government had not proven the ideas and developed the first products.

We also wouldn't have (as an example) pocket calculators if it weren't for Texas Instruments or personal computers without Hewlett Packard and Apple, so I am not attempting to belittle private enterprise. My point is that there are things best done in the private economy and others best done by government. Trying to replace government with private organizations will result in the governmental job not being done well. The key is to recognizes what functions belong to which sphere of society.

NPR's Fresh Air covers Blackwater - the Mercenaries.

You've seen the book listed at the side of my magazine. It's titled "Blackwater: The Rise of the World's Most Powerful Mercenary Army" by Jeremy Scahill. Terry Gross of Fresh Air interviewed Jeremy Scahill today. Here is the NPR podcast of the interview.

It is just a little over 30 minutes. Listen to it.

Then if you are interested, click through here and buy the book. [It's too new to get a good deal on a used one.]


Blackwater: The Rise of the Most Powerful Mercenary Firm in the World

Privatizing has hurt support services at Walter Reed.

The Army Times reports on the negative effects on support serviced that have resulted from privatizing them and hiring a contractor run by Al Neffgen, a former senior Halliburton official.

Also the Committee on Oversight and Government Reform has subpoenaed Maj. Gen. George Weightman, the recently relieved Commander of Walter Reed Hospital. The Department of Defense refused to let him testify, but will not give any reason for the refusal.

---

Military Times coverage of the Walter Reed Army Medical Center scandal:

• Official: Gates fired Army Secretary (March 2)



• Democrats say Harvey’s ouster isn’t enough (March 2)



• Walter Reed topic of five hearings next week (March 2)



• Maj. Gen. Eric Schoomaker named new Walter Reed head (March 2)



• Committee subpoenas former Walter Reed chief (March 2)



• Walter Reed chief fired; critics say more must go (March 2)



• Army denies patients face daily inspections (Feb. 28)



• Walter Reed patients told to keep quiet (Feb. 27)



• Walter Reed soldier wins small victory (Feb. 27)



• Gates’ candor on hospital woes lauded (Feb. 27)



• Pentagon names members of Walter Reed panel (Feb. 23)



• Renovations underway at Walter Reed (Feb. 22)



• Wounded and waiting (Feb. 17) .

Privatizing government functions does not increase efficiency

Nathan Newman writes about the myth that privatizing government functions saves money.

"Research Shows...No gain from Privatization: If you think these are anecdotal headlines, broader research has found no net financial advantage for states from handing over work previously done by public servants to profit-seeking contractors. A study by Rand Corporation released last week found that privately-run schools in Philadelphia did no better in raising student test scores than did publicly-run schools, adding to a range of evidence that privatization of schools is no panacea. Despite New Mexico having 43 percent of its prisoners in private prisons, the highest in the nation, there is little evidence that this saves the state money and has left state officials with few experts qualified to monitor the private contracts. As Paul C. Light of New York University, who has long tracked the hidden contractor work force, writes, “We have no data to show that contractors are actually more efficient than the government.”

So if privatizing government functions does not save monye, why to politicians persist in privatizing things?

Let's be charitable. Many are simply suckered in by conservative "The Market is Everything" ideology. But the fact it that in most cases it is special interests who have determined how to rip the government off and who share their rip-off gains with the politicians they have bought.

Go read the article. It is excellent. Especially, look at the Rand Study the articl refers to. For the most part, privatization of large government functions is little more than theft of government tax money. The government winds up paying more for inefficient and ineffective services, while watching private individuals build personal fortunes from money they skim from the process.