Tue 23 Feb 2010
Business Experience vs Government: What if you couldn’t make a profit?
Posted by Omar Ahmad under PositionComments Off
I often hear a refrain regarding government, “if this was a business you would do this. Why can’t they run government like a business?”
Many of you run businesses. You certainly run your households and have a sense of how a budget is balanced, how sacrifices are made and when tough choices are clear.
So you look at government and wonder where the common sense went. You wonder if these “government folks” simply exist on another planet and gravity just doesn’t enter into their world. You live in the real world – why don’t they? You and your family make tough choices everyday, why does government seem immune from making tough choices? It’s simple isn’t it?
My time in government has made me aware of rules government has as part of its contract with the people.
Rule #1: Government is not allowed to make a profit.
Would you open any business on Main Street if you were told the most you could ever charge for your good or service was exactly what is cost you? What this would look like:
If it cost you $2.50 to make a sandwich, you would only be allowed to sell them for $2.50. Not a penny more. You business would never “get ahead.” Why would anyone enter this kind of business?
You wouldn’t. But that’s not the purpose of government. The people come together in a government to build a platform of common values and common justice for their community.
While the laws of Darwin prevail with “survival of the fittest” our governmental structures are built with the notion that all are worthy of a fair opportunity, not just the strongest.
In the business world there are a few points to ensure a “level playing field” where companies will compete for business. Beyond that, Darwin and the free market will dictate who will live and who will die.
So while many aspects of business are appropriate to apply to government – one has to remember this key point: the reasons for business and government to exist are very different.