Question

Type down (easy to copy and paste) your comment after reading the following paragraph

The private sector can accomplish a similar goal at a dramatically lower cost, in less time, while creating a superior product relative to the government sector because of the competitive nature and the need for monetary efficiency. The private sector gets its funding from investors, who are looking for a return on their investment, and they know that if the company fails they will lose their investment. As such, they must create the most efficient design and production process as possible, wasting no money in the meantime. The government is held significantly less accountable, and instead wants to appease all its constituents by offering jobs and business to many different areas, lengthening the production process, and adding unnecessary costs, as seen with the several different areas of the nation that NASA operates in. They essentially operate with an open checkbook because the government representatives will not let their local economies lose major sources of business and jobs. When the government contracts private businesses, like SpaceX, to build NASA rockets on the other hand, these businesses know that they are receiving a certain amount of money, and every excess dollar that they save turns into a profit. This carries down to NASA being viewed more as a jobs program than a space program, as all private sector companies have proven to be far more efficient, with the only clear reason NASA still attempts to compete being the risk of people losing jobs at the NASA offices. This ties into the concept of pork barreling, where Congress representatives attempt to funnel government dollars into their local economies. It would be far more efficient for the government to offer grants or investments in these more successful private companies. However, in certain areas we can trust the public sector more than the private sector. When it comes to our safety and health, we turn to services like the fire department, and even nonprofit hospitals which are not here to minimize their costs when helping us out—we want the best service and health possible, so we do not want them to attempt to earn a profit on us and offer subpar service. When it comes to national security as well, we need to be able to have strong checks from the government, even if it is more expensive, since national security is not necessarily the main goal of private sector companies. As long as there is some degree of competition to keep private companies in check and speeding toward a particular goal, such as with the space programs, the outcome is simply far more efficient.

Answer 1

Public sector and private sector both are essential for any economy in a certain proportion and as per some norms which keeps changing from one country to another country.If we look back into history two super powers one is Capitalist USA and Communist Soviet Union(now Russia ) ; the united states might be a capitalist economy but still the govt exhibits indirect control over economy and still owns sectors which are of strategic importance such as defender, space research etc. This shows that even the us economy has the features of a mixed economy i.e. private ownership of factors of production,free market and capital controls beyond some extent and govt intervention in economic activities in order to achieve social aims and for public good. Hence mixed economy is essential for the sucess of an economy and the us economy is a good example of it. Even communist nations like China and erstwhile USSR(Russia) have moved towards mixed economy model and achieved considerable economic progress . China raised to one of the biggest economy from the stage of developing county by liberalizing the regulations paving way for mixed economy. Although it is explicitly stated as a communist nation it has adopted the features of mixed economy. India and Sri Lanka are the first and foremost nations to adopt mixed economy explicitly but in a different manner. From the above examples from history we can understand that extremeness of anything is hazardous and causes a huge lods. So every economy should be in such a way that it strikes a proper balance between public and private sectors. Points which merit private sector are accountability, transparency, efficient operation of enterprises, increased employment opportunities and are less corrupt . Public sector on other hand is necessary for social well being of society such as public works, health, education,defense etc. So both are necessary for well being of economy in certain proportion which is not specific digit but varies from nation to nation.