Public vs Private
One of the long-standing debates in America is that of public institutions vs private institutions. Generalizing quite a bit, those on the Right prefer private institutions and those on the Left prefer public institutions. The arguments boil down to the belief that institutions are more efficient and provide better service when there is a profit motive for them vs the idea that the pursuit of profit undermines the primary purpose of these institutions and forces them to exploit instead of serve.
Regulations are sometimes used as a compromise between those two stances. Institutions can be private but since they provide a service, they must meet certain requirements. This shifts the debate from public vs private to regulation vs deregulation. Those in the industry chafe under the regulations, concerned at the profit they could make without them. Those in favor point at all the exploitive behavior that still occurs and the ways the institutions seek loopholes.
Now, given my post history, you would probably assume I am in favor of more regulations and lean toward the left side with more public institutions. Generally, you’d be correct. But you may be surprised that I actually prefer both.
To illustrate this, let’s take a look at the parcel delivery industry. We have the United States Postal Service vs UPS/FedEX/etc. Those on the Right would argue that the USPS is inefficient and pointless these days. Why bother with it? Those on the Left argue that without USPS there would be many people who would go unserved by the profit-driven companies. While I agree with the position on the Left, I’d add that the Right should be in favor of the USPS too.
Why? Having the USPS is the reason the private delivery companies are so efficient in the first place. Everywhere they serve, the USPS is there. Maybe USPS isn’t the most efficient or well-managed institution. But it’s everywhere. And it’s affordable. Need to get a letter from California to Maine? $0.55.
Cheapest UPS would quote me was for 1lbs item, rather than the 1oz it is, and that cost $11.71. So despite the arguments for the private institution’s efficiency, they can’t get anywhere to close to that. But it’s this competition that has forced them to learn to do the things they do well.
As a comparison, let’s look at cable companies, specifically their internet function. This is an industry with almost no regulation in terms of pricing and service. And it has no competition, either privately or publically. They have an effective monopoly in most regions. And it shows.
Think of all the complaints you hear against cable companies (bad customer service, ridiculous prices, etc). Now, imagine cable companies were Public institutions. Those on the Right would be complaining about the inefficient government. But these companies are private institutions. These problems exist because they have no competition. Yet, for some reason, those on the Right are against either Regulation or Public options.
What would happen if suddenly every region provided a public alternative to cable companies for getting wired internet? Suddenly, the private companies would have to compete. Like the standard letter rates of USPS, there would be aspects that the all-encompassing government option would just do better by the nature of the economy of scale. But, like UPS/FedEx, the private companies would find the niche that public institution wasn’t doing well and they could fill that.
Having public institutions provides a minimum under which private organizations must compete against. That ensures they even have competition. Without that assurance, companies grow until they become monopolies and then they are the thing they argued public institutions would be. Private monopolies will seek to destroy all competition. Public institutions don’t care about being a monopoly. They have a mandate and they’ll do that but no more. The very thing that those on the Right use to argue against public institutions is the very thing that makes them essential to enabling private institutions to flourish.
We need both. We need public institutions that serve everybody with a satisfactory minimal level of service. They need to be well funded and well managed. They need to be left alone by those in power so they can do their job.
Then, private industry and move into to flesh things out. Fill in the gaps of service people want but don’t necessarily need. USPS will get your package across the country for a reasonable price in about a week Maybe more, maybe less. UPS can get it there tomorrow, guaranteed and they’ll personally hand it over with a smile. It will cost you but that’s okay. The customer has an alternative.
