Comment by QuadmasterXLII
4 hours ago
A well behaved market is much more efficient than a government, but there’s no real difference in efficiency between a random corporation and a random government - you really need a diversity of sellers and buyers, privatizing into a monsopony or monopoly is reliably disastrous. Sorry, I know this is off topic but the conflation between “markets are efficient” and “private enterprises are efficient” is so frustrating from both sides.
> A well behaved market is much more efficient than a government
I wouldn't be so sure about this. A lot of what markets do is unnecessary overhead needed to make markets work. Maintaining enough competition means having to pay the costs of having multiple organizations doing the same thing. Each must have their own strategy, HR, marketing, etc. A lot of work is unnecessarily repeated. A lot of behavior that is forced by competition, like advertising / patent and copyright systems / hiding research instead of sharing it is very wasteful. Profits going to the owners is also an overhead cost that might not be needed in other types of economic arrangements. All these costs need to be paid at every level of the production chain.
We should also consider the goals of each type of organization. The goal of a business operating in a market is to maximize profit for the owners of the business. It's efficient at that. The goals of a government can be much more varied. They can't really be easily compared.
If the market was critically examining fundamentals and thinking beyond the next quarter, I might agree with you. As it is, by and large it cares about the next earnings report.
I work in fintech, at a market leader. We are wildly inefficient, but there is little interest in fixing it, because we’re making money hand over fist.