The Politics/Religion/Conspiracies Deathmatch Thread

[The Dunster]

You're 100% right provided that the private enterprise is more efficient

and innovative. Is that a universal truth?
Genuine question since I know sfa about this area, but

I'm assuming there have been some studies done on it.

Also, there are some obvious benefits to the

government/people in retaining such assets, as you yourself point out with the example of a letters

service for country peeps.
The position that pro-nationalisation people would hold is that there are

some essential services in society which, while expensive, are essential to be retained so that

there is a greater level of control, to stop inequality, make delivery easier etc.

Arguing

that private sector is more efficient than government sector is about as scientific as arguing the

earth is flat.

The evidence suggests that the private sector is less efficient and by a considerable

margin. The reason being self imposed compliance regimes and the ability to become insolvent.
Government red tape is minimal in comparison and insolvency is impossible for a country that is a

monopolist issuer of its own money such as Australia.

The Abbott Hockey Regime found this out the

hard way when a report they commissioned completely backfired on them in October 2014.Here is a

small snippet from the report.

… by laying down the law – imposing rules on ourselves – in

areas as diverse as human resources (HR), information technology (IT), finance, legal, marketing

and executive governance.

The time required for employees to comply with self-imposed rules has

become a crippling burden. Middle managers and senior executives are chalking up 8.9 hours a week

complying with the rules corporates set for themselves, with other staff spending 6.4 hours.

http://www2.deloitte.com/au/en/pages...t-of-your-own-

way.html [ Nothing in the report surprised anyone with any understanding of economics]

Moving on -

Think about this.

If Aggregate demand is at a level not compatible with full employment - How can

the private sector increase aggregate demand to restore full employment ?
Answer is it can't.
Government on the other hand can increase aggregate demand by simply increasing spending.
They don't

need to print money, dip into any prior savings, or even increase taxes to do so..

Get away from

thinking taxes fund government spending and that government borrow money to fund deficits and you

will be a lot closer to how the economy actually operates in the 21st century.

Yes, it's that

simple.

Another area of inefficiency in the private sector is wage determination. There is

absolutely no relationship between wages / incomes and contribution to society or indeed

efficiency. I'll provide a link below for you to investigate if you like.

http://www.neweconomics.org/sites/ne...A_Bit_Rich.pdf