Big Government Bleeds Citizens

This list could go on for days, but I'd like to address a few ways government is damaging to those it purports to serve.

  • Government is a monopoly in the services it provides.
  • Government pays more and gets less.
  • Governments decide who and what will be successful.
  1. Government is a monopoly in the services it provides.

    While we have laws in place to protect us against monopolistic activities of private business because of the damages it can cause by having one company control all the activity surrounding a particular product or service by limiting choices, stifling innovation, and inflating prices for some reason many don't see that as a detriment when government bodies take over an industry either through regulation or ownership.

    Once a government takes over a function and removes the competition either via no-compete regulation (US Postal Service) or complete control regulation (health care, utilities) these services have no arguable reason to be creative or cost effective. First Class mail delivery has remained the same for decades. In fact the US Postal Service has increased the burdens on the consumer through increased address requirements such as zip codes and zip+4 without measurably improving the service while increasing the cost.

    You can translate this into all industries conscripted by government.

  2. Government pays more and gets less.

    Due to the methods necessarily, but not effectively, put in place to prevent government employees and officials from favoring one supplier over another and the union protectionist regulations regarding supplier wages (Davis-Bacon Act http://www.gpo.gov/davisbacon/) the government spends an incredible amount more on projects than you or I would and receives an inferior product in return.

    Let's look at the standard buying practice of the average consumer. They typically will shop around or solicit bids from a variety of manufacturers, retailers, or contractors. These suppliers will listen to their customers and offer the best product they have to offer fitting the needs of the client. Many times making suggestions on some alternatives that might be better. The client then compares the offerings and purchases the product or service based on their needs and the offerings thereby getting the best for the least.

    Now let's look at how governments buy things. A need is determined. A long and detailed specification is written internally that defines the exact needs, nothing better, nothing worse. The request is submitted to public bid requesting a response from interested parties, in many cases numbering in the dozens. Each of the interested parties, assuming they meet the long qualification requirements (many times written to quietly prefer certain vendors), spends their resources and money developing a response. Included in this response must be the artificial (prevailing wage)labor rates established by the government which can be double the market rate. Also, since contracts are awarded to the lowest bidder the lowest possible quality of materials that meet the specification are used with the least amount of time possible to complete the contract.

    The end result is that while a consumer or private business buys and gets the most competitive and highest quality product or service for their budget the government gets the least.

  3. Governments decide who and what will be successful.

    When governments get involved they invariably decide which industries and technologies will succeed based on political influence not on merit.

    Through the use of tax credits, grants, loan guarantees and other subsidies governments support specific sectors of industry making them artificially attractive to consumers causing them to disregard alternatives which may provide more innovative and efficient results.

    An example of this is in the US Governments (and some States too) intervention into "green" technology. By offering huge tax credits to consumers to buy electric cars (Nissan Leaf, Chevrolet Volt, Tesla, etc.) consumers are lured into purchasing these vehicles at a price less than cost. This means that other technologies which may provide better and possibly even "greener" results won't be pursued as they can't be competitive with the artificially subsidized product. Not to mention that all taxpayers are essentially assisting the relative few (those with cash in hand or super credit ratings) who can buy these vehicles.

As I mentioned in the beginning these are only a few items how government hampers economic and technological development while drawing the most from its citizenry. Add your own if you wish.

Comments

Nice post! After reading this article,I've fully understand about the things concerning the government.I am not saying that the government is bad and we people are good.What I want to emphasize here is how to be the person that will help change the nation.If you're going to observe the kind of society that we have right now,you'll probably say that we are in deep crisis.Why do I say so?Many people are unemployed and that contributes in creating a pool of unproductive individuals that hinder the progress and development of the country.I am not generalizing it.I am just telling the truth and what my eyes can see.I hope the government will be able to create many jobs so as to help many people get up in the pit of poverty and joblessness.As long as we are alive,we can still do something to change what needs to be change.We can make it!