Governments Are Not Run Like Businesses. Nor Should They.

April 22, 2025 (Vol. 19 No. 18) - The Elon Musks and Donald Trumps of the world are quick to tell all who would listen that government should be run like a business. Of course, in the case of Musk and Trump, this sage advice comes from people who have famously run businesses into the ground. (RE: Tesla and Trump Casino.) However, government should not be run like a business. The ultimate goal of a business is to make money for its owners and shareholders. Its efforts are focused on producing goods and services that will prove most profitable. Government, on the other hand, must produce the goods and services that meet the needs of everyone without regard to whether doing so is profitable. For example, pharmaceutical companies produce and price their products based upon consumer demand. If you are someone with a rare, therefore less profitable disease, tough luck. On the other hand, the U.S. Postal Service is expected to provide mail service everywhere from New York City (population 8,8 million) to Prudhoe Bay, Alaska (population 1,300). While there is undoubtably waste in government, the same is true in spades for businesses. The difference is that governments operate in the open. Businesses bury their mistakes. While publicly held companies and non-government organizations face certain disclosure requirements, that is nothing compared to the transparency under which governments must operate. Frankly, a lot of business disclosure is gobbly-gook. I defy you to read any company's creatively crafted 10K filing and to come away with a sense you have received the straight scoop. Financial analysts are experienced at reading between the lines to unearth hidden truths. Of course, the Trump administration has adopted a psuedo-businesslike approach which places cost-savings ahead of agency missions. Does anyone really believe that gutting the Centers for Disease Control and the Federal Emergency Management Agency are good ideas? The DOGE slash-and-burn approach to budget cutting has been anything but strategic. Musk's minions have been cutting entire agency budget lines without regard to their congressionally mandated missions. That's how they wound up firing all the folks who oversee the nation's nuclear arsenal, only to have to call them back (if they could find them). That's also why judge after judge has reminded DOGE that it is Congress, not the White House, that dictates the role and existence of federal agencies. There is one other key difference between government and the private sector: government's mandated transparency over the private sector's often spurious self-policing. As a result, the incidence of business corruption is much higher than you will find it in the public sector. If you want to know where corruption exists, just follow the money. An obvious example of how some businesses put greed over public needs is the Trump Organization. (How's that Trump University degree working for you?) The next time someone tells you that government should be run like a business, laugh in their face and hold tight onto your wallet. That's it for now. Fear the Turtle.