Wednesday, February 3, 2021

Public Services

    Be Our Guest

Be our guest    
Be our guest    
Put our service to the test       
Tie your napkin 'round your neck, Cherie    
And we provide the rest.

If businesses are expected to provide service,     
is there a difference between a business and a public service?

Business can choose their customers, set their own prices, and reap their own profits.  They have control over what offerings they provide and what costs to provide those services they incur.  If they fail to be profitable, those businesses can declare bankruptcy .  By contrast a public service has customers that are determined for it, can not realize their own profits, have no control over their offerings or costs, and can NOT declare bankruptcy, It is a public services NOT a business.  Those public services can be expected to operate efficiently, but that does not mean that they are a business.

The US Postal Service is just that… a public service, a government function, not a business.  Acting as if it was a business is not reasonable.   Public schools, prisons, etc. might chose to use private contactors to provide some of their functions, but that does not make them business.  The public, acting through its representative government, is responsible not only for the benefits but may have to provide subsidies to realize those benefits.

The business of government is to provide services that are determined by the government, not to be a business itself.  If services  required no subsidies but were guaranteed to be profitable, then presumably businesses would have provided those services.  Public services are those that the public requires but businesses won't provide.

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