Business Poli-Sci: Public Verses Private Sector

Friday, June 19, 2009

Public Verses Private Sector

Inspired by new laws to decrease government in relation to health care perhaps more government institutions should be downsized. The United States Postal Service filled a need no one else would provide. Over the past several decades private businesses grew. USPS is the only delivery service delivering letters house-to-house; however, USPS should be downsizing not growing.

FedEx and UPS opened stores around the country. Increased ease-of-access to regular people, they deliver packages and letters. However, their infrastructure relies on the United States Postal Service when sending mail internationally. Now that private companies can take over USPS should step down, yet they continue to compete against existing companies.

There is a limit to socialism. We need generators for electricity. We need airports. We need phone service. Often there is a high cost associated to research, development and installation. Investors were hesitant in building facilities large enough to support an entire city let alone an entire country so a tax was imposed for the common good.

Generators large enough and powerful enough for an entire city are difficult to make and have limited demand. Government made electricity available to everyone. Smaller generators are offered to consumers. It is doubtful private companies will offer the same level of service.

Airports are expansive and relate to military. Larger airports support large planes like B-52s. Some smaller airfields are private, yet smaller air strips could never support an army. A percentage of the cost paid by private contractors; however, the overwhelming cost is paid by taxpayers; therefore, government adds whatever x-ray machines are needed because the military owns the airports.

Phone service is a level of contention. The older generation clings to landlines; however, more people are moving to cellular service. Have competing landlines service, though government sponsored companies attempt to compete against private companies. Consumers then pay a portion of operational costs related to maintenance. Since we still need phone lines, it would be appropriate for the taxpayer to pay for maintenance on phone lines and cellular towers, similar to the federal tax on freeway maintenance. Private companies pay to use the lines built by the government, because they are public property paid by taxpayers.

The Post Office is an American institution. Between e-mail, phones and private companies they are no longer a necessity. As a government funded company they may gracefully leave the market or become a private entity. It doesn't have to be today or next year; however, a ten year plan to dissolve government contracts would be worthwhile or extend USPS to international, not domestic delivery.

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