It seems there are a few rules that emerged from yesterday’s discussion about private versus public functions and efficiencies.
1. Government functions are inefficient all on their own. There are not enough feedback mechanisms to make government efficient at any point in time, and its functions serve ‘minimal’ or no purpose. With the taxing ability, however, it does not go out of business and just gets bigger.
2. Private market functions have inefficient times called market failures but pricing weeds out winners and losers continuously as they serve buying preferences of customers. Winners and losers are companies only, and not the players so much.
3. 1 and 2 have no moral and ethical considerations as a societal preference, since pricing (and some others?) is the key mechanism that makes sense to sort everything out.
4. Government is the preferred method of coercion because it is more ‘efficient’ in the art of coercion than private companies.
5. Private companies that capture government functions are blameless, since government opportunity costs make it seductively irresistable and coerces companies into such behavior.
6. ‘Eventual’ corrections is a term for private companies (no time given or examples) for not adapting, whereas government is incapable of adapting except when it changes policy.
Please correct any misconceptions I have about yesterday’s discussion.