Mises Wire

The Problem of Government Businesses

The Problem of Government Businesses

FEE this morning links to an AP story on how the US has scrapped plans to privatize Iraq’s oil industry. Much more interesting, however, is the article linked on the same item: a wonderful short piece by Murray Rothbard called “Government in Business“ that ran in The Freeman in 1956.

Is there traffic congestion? Ban all cars! Water shortage? Drink less water! Postal deficit? Cut mail deliveries to one a day! Crime in urban areas? Impose curfews! No private supplier could long stay in business if he thus reacted to the wishes of customers’ But when government is the supplier, instead of being guided by what the customer wants, it directs him to do with less or do without. While the motto of private enterprise is “the customer is always right,” the slogan of government is “the public be damned!”
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