by chuck » Mon Jun 09, 2008 2:06 pm
To confound those who are too idiotic to qualify their statements before proclaiming the superiority of private industry, in the naval field, whenever there is demand for large war-time expansion, it is usually the private yards and contractors that were the most corrupt and inefficient, and it is usually the naval yards that were the best organized, efficient and clean. One see this again and again from Napoleonic war, to the Civil war, to now.
The general lesson seems to be private industry does seem to have some native superiority in motivation. But the motivation can only be successfully tapped to serve the public good when the overall system is stable, and there have been a long time for well developed public oversight to evolve so the private industry can be astutely and comprehensively regulated. When all means of cheating and corruption are choked off, I have no doubt private enterprise possesses a competitive advantage in the avenues that remain.
But when situation is in flux, and no time has been available to develop well thought out system of regulating private enterprise and choking off avenues of corruption, the private enterprise, uncoerced, or insufficiently coerced by the state, is usually animated more by quick profit through cheating the public, rather than to serve the public. Furthermore, such corruption, if allowed to fester, does not eventually self-regulated, and required external governmental and regulational interference to stabilize.
While it is true that over-regulation makes the industry more unresponsive, it is also true that de-regulation is often only accomplished through the generosities of unsavory allies. Many, if not most, of those in the government and policy circles arguing for deregulation are really motivated primarily by the desired to receive kickbacks from private industry dying to exploit avenues of corruption that would be unchoked by deregulation rather than by any well-informed and enlightened desire to provide avenues for increased competition and responsiveness. Industry will not self-regulate with the goal to serve the public good. What is more is private industry, at least American form of publicly traded, share holder driven private industry, will not even self-regulate with the goal of serving the long-term good of the industry itself, and would be content to corrupt itself to the maximum degree possible at the first opportunity, and thereby prompting the maximum response, instead of corrupting itself a little less, so as to be able to remain corrupt longer before there is a response. Witness how the energy industry manage to railroad itself into re-regulation through its to-hell-with-tomorrow style of corruption when first deregulated. To argue that they would is to not understand exact why private industry does in fact work when they are regulated from outside.
When one keeps in mind the behavior and the motivation of private industry, and look at the conditions and restraints under which their talents can be tapped for the public good, one shudders at the thought that the state would relinquish its role as the dominant purveyors of violence and coercion in a nation to any private contractor.
To confound those who are too idiotic to qualify their statements before proclaiming the superiority of private industry, in the naval field, whenever there is demand for large war-time expansion, it is usually the private yards and contractors that were the most corrupt and inefficient, and it is usually the naval yards that were the best organized, efficient and clean. One see this again and again from Napoleonic war, to the Civil war, to now.
The general lesson seems to be private industry does seem to have some native superiority in motivation. But the motivation can only be successfully tapped to serve the public good when the overall system is stable, and there have been a long time for well developed public oversight to evolve so the private industry can be astutely and comprehensively regulated. When all means of cheating and corruption are choked off, I have no doubt private enterprise possesses a competitive advantage in the avenues that remain.
But when situation is in flux, and no time has been available to develop well thought out system of regulating private enterprise and choking off avenues of corruption, the private enterprise, uncoerced, or insufficiently coerced by the state, is usually animated more by quick profit through cheating the public, rather than to serve the public. Furthermore, such corruption, if allowed to fester, does not eventually self-regulated, and required external governmental and regulational interference to stabilize.
While it is true that over-regulation makes the industry more unresponsive, it is also true that de-regulation is often only accomplished through the generosities of unsavory allies. Many, if not most, of those in the government and policy circles arguing for deregulation are really motivated primarily by the desired to receive kickbacks from private industry dying to exploit avenues of corruption that would be unchoked by deregulation rather than by any well-informed and enlightened desire to provide avenues for increased competition and responsiveness. Industry will not self-regulate with the goal to serve the public good. What is more is private industry, at least American form of publicly traded, share holder driven private industry, will not even self-regulate with the goal of serving the long-term good of the industry itself, and would be content to corrupt itself to the maximum degree possible at the first opportunity, and thereby prompting the maximum response, instead of corrupting itself a little less, so as to be able to remain corrupt longer before there is a response. Witness how the energy industry manage to railroad itself into re-regulation through its to-hell-with-tomorrow style of corruption when first deregulated. To argue that they would is to not understand exact why private industry does in fact work when they are regulated from outside.
When one keeps in mind the behavior and the motivation of private industry, and look at the conditions and restraints under which their talents can be tapped for the public good, one shudders at the thought that the state would relinquish its role as the dominant purveyors of violence and coercion in a nation to any private contractor.