Saturday, January 23, 2016

Government shouldn’t create business entities to compete with the private sector

Government shouldn’t create business entities to compete with the private sector - NetRight Daily
"Should a city buy concrete trucks and start its own construction company if it doesn’t like the demographic makeup of the employees of the construction companies that could do work on city construction projects?
Most people with any experience around government operations would scoff at the notion, yet last year, Akron, Ohio considered doing exactly that.
This is just one of many examples the Business Coalition for Fair Competition recently put together of the government either directly or through the creation of new entities engaging in commercial activities that are designed to compete with the private sector.
In these instances of government competition with private enterprise, taxpayer funds help provide subsidies to the commercial activities that in many instances would not be available to real businesses.
These subsidies may range from taxpayer funded staff support to preferences in obtaining business from the government.
This is not the way to ensure cost effective governance.
These are also activities that the government has no business engaging in at all. Governmental control of the means of production, is, after all, the literal definition of socialism.
Unfortunately, like a lot of governmental activities, the inertia is in the direction of continuing to enlarge the size and scope of what the government does in the area of commercial activities..."

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