Mark Snyder wrote, along with several irrelevant anecdotes:
The so-called inefficiency of government programs is a myth spun by "garage
logic" adherents and (Rich) Taxpayers League flunkies.

Mark Anderson:
I don't know what "garage logic" is, but here's some logic derived simply
from living in a modern society and watching events.  There are several
reasons that government programs are inherently less efficient than private
operations.  I define efficiency as providing the highest level of goods and
services desired by consumers at the lowest cost.

1) Government is a monopoly, so no one can decline to pay for their
services.  Naturally there is less incentive for the service providers to
provide what is desired by the service receivers.  The only incentive for
the ultimate bosses is to get re-elected.  This is an obvious problem with
the bus strike, since providing bus service won't help much to get Pawlenty
re-elected.  Does this sound like an efficient system, Mark?

2) Corollary of #1: In government the way to get ahead is to do activities
that look good politically.  In business the way to get ahead is to satisfy
one's customer at the lowest possible cost.

3) Accountability to the voters is very diffuse, because all services run
through just a few office holders (and two political parties).  Voters must
weigh services of all kinds when they determine which official to vote for.
They may vote for a candidate that represents poor bus service and police
protection, because they also represent good roads and garbage service.
When choosing a business to patronize, one may base the decision on just the
one service they provide.

4) When businesses fail to satisfy their customers or spend too much, they
go out of business (if government doesn't bail them out).  When government
fails, at best new candidates are elected, usually with little change to the
provision of services.

5) Candidates are selected based on their political skills, not any
knowledge they have in running an enterprise.  Occasionally this happens in
business too, but those businesses normally go under quickly.

6) Government is constantly buffeted by complaints, many of which have
little to do with providing services to consumers.  Businesses can ignore
such complaints as long as consumers are satisfied, but government must
spend most of their management time dealing with such political issues, at
the expense of the actual services they provide.

Those are the points of inefficiency that occur to me off the top of my
head.  I know there are several other points that are just as valid, but
they escape me at the moment.

This is not just a left vs. right issue.  Many leftists have been bitterly
blaming Pawlenty and Bell for the bus strike.  The poor are indeed being
left in the cold in this fight, and part of the reason is because it's a
government-run operation.  As Terrell pointed out, what is the incentive for
the Republicans to settle the strike?  The government has no incentive to
provide services unless it helps them get re-elected.  If businesses ran our
mass transit system, they'd be hurting every day the buses weren't running.

Also, what skills does Bell have in running a transit system?  Other than
his time at TCF, he's just been a political activist.  I suspect even his
TCF time was basically public relations.

Now that Democrats see the direction the government moves under the opposing
party, they should understand that privatization is beneficial to them too.
Well, it would be beneficial to their constituency, which isn't really the
same thing as beneficial to the Party.  But if we de-politicize a service,
and instead provide private incentives to run it well, one ends up with a
better result.

Mark V Anderson
Bancroft


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