this post was submitted on 19 Mar 2025
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That's an interesting point. The government tends to get ripped off because of negotiation issues. Private orgs can hire and retain the best negotiators, whereas govt can't afford that and if they can, they'd still be vulnerable to accusations of cronyism to have the best of the private sector's negotiators negotiating with the companies they've probably dealt with privately before and who they will likely be back with in the future.
This is one reason why competitive procurement is such a big deal and so complicated and time consuming.
We know from bitter historical experience that privatising public operations, especially natural monopolies like utilities, results in worse service and higher prices, coupled with sub-par investment. A private company can be bailed out if it goes bankrupt sending all its profits out to shareholders. A public org has an incentive not to waste taxpayer money.
That is true, some things should stay public. But you can surely see why making the government run everything is inefficent amd stupid(ignoring all the other problems with that).