undefined | Better HN

0 pointsMattPalmer10861y ago0 comments

This meme that government is just hugely more inefficient than business is not correct in my experience.

I've worked for both. I have seen massive waste in business, millions spent for no gain, staff employed to build a manager's empire, not to do anything that was actually needed and other terrible outcomes. Obviously that also happens in government too, although the bigger problem there was a whole bunch of lazy staff who were hard to fire.

But... A business can largely choose its market and optimise for that. A government cannot - it has to work for pretty much everyone. Business can choose to skirt the law or even break it. Government departments must comply with all law to the best of their ability.

Not saying there are no ways to improve government efficiency. But the people who think you just need a business approach (unless you just want to break it all) are deluded.

0 comments

ivewonyoung1y ago

The big difference is that taxpayers are on the hook for government inefficiency and for most services there is no competition, the classic example being the DMV. Having one hour queues frequently is rare in private businesses.

Whereas with businesses they could go out of business if they overspend on inefficient processes and there can be competition on both quality and price.

One of the root causes is that it's very difficult to fire government employees for bad performance so that's why government services suck and cost a lot in almost every level of the government and in pretty much every country with some exceptions, like say the NTSB in the US.

It's not even that low performers should all be fired, but the fact that knowing you it's hard to get fired leads to many people underperforming given natural psychology. The other problem being lack of incentives tied to performance.

ModernMech1y ago

When the public government services are privatized, it's not going to look like a bunch of scrappy companies engaging in free market dynamics to deliver services better than the government could; it's going to look like darling contracts granted to crony insiders who leech tax dollars into offshore accounts while delivering the worst possible service they can get away with.

MattPalmer1086OP1y ago

The majority of people I worked with in government were actually very motivated. Sometimes it was public service, sometimes they were ambitious for their career, sometimes they just liked what they were working on.

I have not really seen more motivated people in business due to performance incentives. Even in the financial sector, other than maybe traders and quants, I can tell you most people don't work harder because of the annual bonus.

It was certainly a bit dispiriting working with the minority of people who appeared to do absolutely nothing and just hung around for years. We all knew we had to work harder because of them. Some of them would definitely have been fired in a business.

j / k navigate · click thread line to collapse