Government Isn’t Business

Back in the day, Bill Clinton and Al Gore set out to redefine government in the mould of modern business. The idea was that government would be more efficient if it worked more like a business. There were some good ideas here, but the basic concept failed, and not just because the follow-on governments of the Party of Business rejected the ideas (because they were thought up by Democrats), but because the basic concept is wrong. The practice of government is not like business, any more than the practice of medicine is. Businesses have customers, and seek to extract maximum profits from those customers. Government has citizens, and seeks to promote the common welfare. In business, the bottom 20% of your customers are the ones you shed. In government, the bottom 20% of your citizens are the ones who need your help the most.

This difference in basic motivation results in widely differing approaches to, among other things, decision-making and negotiations. In his book, The Art of the Deal, Trump talks about showing his opponent the down-side of not accepting the deal. When working with the city planning people in New York city, he would ask for exceptions to existing regulations — because successful real estate development in the city is based on managing exceptions — and show the planners the ugly buildings he could build if he stuck to the code. BTW, the same year I read TAotD I read an autobiography of a different NYC real estate developer (don’t remember the author) who said that he had never had to ask for a exception. In the AHCA negotiations with the House Freedom Caucus, he essentially demanded agreement, with the threat that if they didn’t support him, ACA would remain the law of the land. We saw how that worked out.

Now, Trump wants to follow in the footsteps of Clinton and Gore, to make government more efficient, more like business. He has selected Jared, I am not a nepotist, Kushner to head up a SWAT team that will make government more efficient. In addition to not knowing what a SWAT team does, what he doesn’t understand is the fact that the Founding Fathers didn’t want efficient government. They wanted government that was difficult to suborn, that was structurally incapable of fostering a dictator.

Advertisements

Tags: , , , ,

One Response to “Government Isn’t Business”

  1. Sandra Says:

    Used to try to convince my students that business is about efficiency (ex: John Rockefeller), while government is about equity (not the Wall St kind). Not sure they appreciated my arguments, but it is still the truth (or should be).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: