Question

Given the arguments about how the public sector is different than the private sector, is it fair for people to complain about government being slow compared to private firms? Remember to draw on your readings and the lecture to support your response.   

Answer 1

Public sector firms serve the purpose of providing basic public services to larger people while private sector firms are wholly profit driven The government prefers retaining ownership of firms involved in utility services such as water, electricity, roads, agriculture and also for industries sensitive to national security. Private sector companies have a wide range of industries to operate with a growing trend of privatization. In stock exchanges, both public and private sector companies can be listed and their shares can be traded publicly. Public sector companies are prone to more government interference for multiple reasons, including political reasons, than their counterparts in the public sector The government controls the pricing of products in public sector entities, which is not the case with private companies.

If private firms don't do things effectively, they lose money and die. Unlike government, the power to tax can not compel payment.

Even when a private firm operates a government-contracted public facility, it must perform. If it fails to do so, it will be "fired"— its contract will not be renewed. Government is never gunned down.

Contracting to private enterprise is not the same thing as letting free markets operate fully competitively, but it still works better than the government.