Government's Perception on the Evil of Profit

Entrepreneur in Chief ^ | 4/21/2011 | EIC

[CriticalThinking]

When faced with the notion of outsourcing certain government services, officials tend to say "Government can do it cheaper because we do not have to pay a profit to executives". This idea often comes up in the health care debate. It is a fundamental misunderstanding of profit.

It is not a surprise for people in government to misunderstand profit. If you have never run a business, made a payroll, raised capital, or promised share holders a return it would be difficult to fully understand the true meaning of profit. A contrasting example would be if someone asked me to be a community organizer, I would not know where to start (I would neither claim to be an expert in community organizing even if elected to an exalted position of power).....

[Mr Ramsbotham]

If you expend more energy getting food than the energy derived from the food you get, you will die. In other words, every living creature is obliged to turn a profit.

[GeronL]

I haven’t seen government do anything cheaper

[4rcane]