Romney in the debate, and Republicans all the time, chant this mantra, "Private sector is a lot more efficient than Government will ever be". I think it is time we deconstruct this, and blow it out of the water.
First of all, it sounds real, and so many economists have said it and it is actually true. That is because of the way they define efficiency. Efficiency for a private sector company is making money, making profits. Every time a CEO announces laying of hundreds or thousands of people, Wall Street applauds, "he is making the company efficient!". See what I mean? Private sector will create jobs if that is what making them profit. They will fire people too if that makes profit. They will out source jobs if that makes them profit. All the while they will claim credit for jobs created, shift the blame for jobs destroyed, and clamor for more and more tax cuts from government, wage cuts from employees, price cuts from their small business vendors. That, dear friend, is efficiency.
And if private sector will efficiently deliver services at the lowest possible cost, how come they are nickel and dime-ing me at the ATM? Just as the cost computers and networking are falling rapidly, just as out sourcing office jobs to India is reducing the cost of maintaining their books, the banks are charging more and more for ATM access. Do you really believe banks are offering the best service at the lowest possible cost?
On top of it the banksters feel "entitled" to the overdraft fees. "If you take away the overdraft fees", they declare, "we will increase late fees and bounced check fees to make up for the loss". Loss? It wasn't yours to begin with, banksters!
Want another example of efficiency and innovation in the private sector? Checked baggage fees, aisle seat fee, emergency door row seat fee, ticket change fee, priority boarding fee... All those people who raise heaven and hell when the state DoT increases driver license fee meekly stand line and fork over dollars. Then they complain the government is wasteful and wish it would become as efficient as private sector.
If private sector is so efficient, how come, UPS and FedEX won't even give you time of the day for 50 cents? But the stupid much maligned post office will deliver a first class letter from Boondocks, PA to Middle of Nowhere, Alaska. If there is no profit, sweetie, private sector ain't gonna serve you. 80% of the area of USA is no-delivery areas for the parcel companies. When private sector competes with the government, they will cherry pick every profitable niche, and leave all the high cost loss making operations to the government.
This is precisely what Romney is offering younger Americans for Medicare. As long as you are in good health, the private companies will happily cash the government voucher and "cover" you. The moment you fall sick they will jack up the premium so much you will be forced to fall back on the government service. Just like 80% of the rural Americans who vote reliably Republican, who wont be served by the great private companies they so support vociferously. You will only get healthcare only from the government. But, under Romney-Ryan plan, the private sector will efficiently siphon off the government vouchers from healthy people leaving you with a medicare as loved and as efficient as the post office.
That is the efficiency of the private sector folks.