THE SURE WAY TO RUIN AN ECONOMYS POTENTIAL IS FOR THE GOVERNMENT - TopicsExpress

THE SURE WAY TO RUIN AN ECONOMYS POTENTIAL IS FOR THE GOVERNMENT TO TRY DO DIRECTLY PROVIDE SERVICES. It is rarely efficient (particularly if the objective is to seek innovative solutions) for a government to directly provide services. Instead, procuring them through appropriate contracts is likely to lead to cost-effective, innovative solutions. Using competition for taxpayer dollars through demonstrated outcomes can motivate highly qualified private entrepreneurs to enter the market and innovate to supply better services. When a government creates a monopoly and directly supplies services, such potential entrepreneurs are forced to join the public sector, which is not as efficient as having them operate in the market sector. They have a direct motivation to translate research ideas from the academia into action, and so are likely to perform far better for society as private competitors, than as government employees. Inducting high quality talent into government to try to directly deliver outcomes is equivalent to reducing the productivity potential of the economy.

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