Government and Private Sector

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I had a great discussion with my Republican friend Julie today over coffee. We were discussing the pros and cons of government versus private sector, and it helped me clarify my views. I am very supportive of private sector, but also see a role for government. Any human endeavor is going to have a certain amount of waste and stupidity, and we have seen in the last few years---first with Enron, then with the subprime mortgage mess---that this is true of the private sector as much as the public sector. The trick is to try to create a culture that minimizes waste and maximizes effectiveness---not easy to do in either sector.

In addition, each sector has an advantage over the other: the private sector has the advantage of the profit motive, but the public sector has the advantage of a long-term perspective. While private companies have to look at their immediate profit, government can devise policies that ensure long-term well-being---though both profit motive and the long-term perspective only work with relatively wise and ethical leadership.

The Enron mess is the perfect example of short-term perspective and short-term profit motive adding up to a disaster. The Bridge to Nowhere is the perfect example of lack of profit motive gone wild.

Culture is at the root of everything. In the end, we will flourish as a society only to the extent that we can promote thoughtfulness and a strong ethical stance. The question of how to do this, how to change behavior and thought patterns, is the big question.
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