Wednesday, January 9, 2013

Public Services And The Profit Motive

 Americans have been taught to believe that the profit motive, and competitive markets, are more efficient than government in delivering public services.  America is unique in that perspective.  In particular, our reliance on for profit firms for the delivery of healthcare services is much greater than it is in other OECD countries.  The bad news is that we spend much more on healthcare as a percent of GDP  than any other nation and we are not any healthier.  The good news is that there are lots of ways to improve an inefficient system.  One approach, favored by some politicians, is to turn more of the healthcare system over to for- profit providers.  They believe that competitive private market are the best way to increase efficiency.  This article argues otherwise.  It provides several examples in which the profit motive distorts the delivery of public services.  It argues that the best way to cut the cost of our entitlement programs is to get for-profit firm out of the business of delivering public services.
  

No comments:

Post a Comment