Government’s Role Is Different From Business’s Role
Government and Business play two different but essential roles in our society.
Think of the government as the citizens banding together to do things in a cooperative, wholesale way what they couldn’t do at all or as efficiently as individuals. Some of these things cannot be done by individual companies either. Companies banding together as monopolies or oligarchies have extremely unfortunate consequences, so we frown on allowing that to happen without strict controls by the government (the people).
I’ll provide some examples, but do not intend to write a book in an attempt to cover everything.
Government provides infrastructure such as roads, sewers and sewage treatment, and flood control. These are large projects that consist of many pieces that must work together, but we don’t need multiple copies in competition with each other.
Government also provides services that have no short term payback, but have important long-term consequences. Education of the citizens and work force are important. Some of what citizens need to learn is related to making society work as a whole and have little to do with satisfying the needs of a company or business.
Companies have primary responsibilities to their owners/share holders. There are no national boundaries to where the owners live or where the company does business. We should not expect large, multinational companies to have an allegiance to only one country.
Government, on the other hand, has its primary responsibilities to its citizens and residents. We should expect the government to have a keen interest in the welfare of its residents.
One of the advantages of our economic system is diversification. It is very hard to predict which inventions will lead to new industries that change the world. With diversification of companies we get many different attempts to make a business out of an invention. Most fail, some succeed on a grand scale. Companies come into existence and go out of existence as the needs of people change over time. This is what makes our economy vibrant.
What the government provides should not come and go with quite the same rapidity. Health care, retirement, education, infrastructure, defense, currency, and many other things need to be dependable for the long run. Certainly they need to adapt to changing conditions, but they probably shouldn’t disappear altogether in one form to suddenly reappear somewhere else in another form.
I won’t go into any details, technical or otherwise, but the interaction between the federal government and the economy is hugely different from the interaction between even the largest companies and the economy. Any national politician, who does not recognize and understand that difference, can only lead us to wrack and ruin. We have plenty of evidence of that in the present let alone our most recent history.
When we realize these vastly different roles, we can see that being a great success in business does not necessarily make for great success as a politician – be that mayor, governor, senator, representative, or president. When we elect people to these roles, we don’t want them thinking just like business people. We want them to understand that they are taking on a different role and different responsibilities from what they did when they succeeded in private life. We should always ask candidates to explain their understanding of how the role of government is different from the role of business.
Business experience isn’t a bad thing for a politician. However, when running for office, we ought to demand that politician show us an understanding of how the new role will be different from the old one. If the politician does not recognize the difference, there is little hope that this politician will have a highly beneficial impact on the lives of the citizens/residents with respect to the large matters given to the care of the government.