Comments about ‘Corporation or government could be both right or wrong’

No-Child-Left-Behind is a typical example of governmental answers to problems. The federal government specializes in fixing things that aren't broken and breaking things that need repair.

Social security and Medicare might be the only things they ever got right ..... and they are both going bankrupt.

Here are two differences I have found between public and private market solutions.

1) Public or governmental involvement in producing goods and services crowd out private interests. The Canyon Racquet Club was viable until the Cottonwood Heights Rec Ctr opened. The government taxes every home in the area and subsidizes a small percentage of the residents to use the facility for a relatively low cost. Now the CRC is a vacant lot. It once employed scores and paid taxes but was hindered to be profitable by the government to which it paid taxes. A strange irony.

2) Capitalism is customer oriented. Consumers benefit from competition but businessmen do not. They preach the benefits of the free market economy but in reality they are all trying to limit the competitive threats. One way to eliminate competitive risk is to side with government. The bank bailouts are a direct result of government involvement. One deposit is as safe as any other so no bank gets ahead by taking less risk. Depositors/lenders are not interested in their balance sheet like they should be. Regulators must then step in to do what the market would normally allocate.