Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote user="schlimm"]But there are many legitimate services that need to be done, such as in the military, that private companies won't touch  unless they can tack on a big profit.   Hence the military ends up spending much more for something they used to do themselves.[/quote]   Well then why do they farm it out to private contractors if it costs more?    I understand your point that the specifics can vary and be an exception to the general rule.  And it is true that private sector activity must include the cost of profit.  But profit is a necessary component of the equation.  Public sector has an advantage of being inherently non-profit, but they are burdened with other deficiencies such as a relative lack of accountability for costs compared to the private sector.   <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p> But if we are trying to compare the private and public sectors for their cost effectiveness in producing goods and services, the example of the military hiring private contactors versus doing the work itself is a highly flawed comparison.  It does not compare the public and private sectors.  Instead, it compares the public sector versus the public sector contracting through the private sector.   So it is really only comparing two variations of the public sector.  <o:p></o:p> Not only is that comparison illogical for reaching the conclusion, but also it is also simply unfair because it is being judged by one of the two participants being compared.  The military has a powerful self-interest in saying that it could do the same work as the private sector at one quarter the cost.  But how can that possibly be verified by any outside observer?  It is a self-serving claim that nobody can verify.   If you want a fair and logical comparison, have a neutral third party judge the performance of public and private sectors producing the same goods or service.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag