Comment 30235

By A Smith (anonymous) | Posted April 17, 2009 at 21:38:50

Ryan >> the most productive businesses tend to emphasize empowerment and autonomy for their front-line workers

The most productive businesses also make the most profits, which is why the market gives those who create the largest customer satisfaction, at the lowest cost, the most capital to invest. When government invests capital, there is no way of knowing how much customer satisfaction they are producing, because they don't charge people for their output. Therefore, they could be selling $1,000 worth of medical care at a cost of $1,200 to the taxpayer. In this case, it would be better to give the $1,200 to the taxpayer, allow him/her to buy the medical care they need and spend the rest on other items.

Without the ability to measure the utility of the goods and services it provides, government likely destroys much of the capital it takes from the private sector. Therefore, anytime government can deliver services to the public through private providers, it will help maximize the utility of each tax dollar it receives from its citizens.

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