Government Spending Versus Private Spending

The following is a step-by-step logical proof that private spending is more efficient than government spending when it comes to increasing the happiness of all private citizens. All logical conclusions are derived using basic economics.

1.) Every dollar the government spends is a dollar taken from the private industry. Thus we must decide which is most efficient in increasing the happiness of private citizens.

2.) Private business salary is based on performance, as their customers directly feel the actions of private business. Thus private business participants have incentive to increase the happiness of all of their customers for minimum price, where their customers make up the entire economy. Giving more resources to the economy as a whole improves the personal situation of a private business participant. Money given to a private business participant goes directly back into the economy. They first spend money on what their customers want, and then spend the remaining profits on themselves(both of which stimulates the economy and increases the happiness of all of their customers). They have to please all of their customers to guarentee themselves future employment.

3.) Government officials’ salaries are based on the amount of money they acquire for their next campaign, as their customers do not always directly feel the actions of government officials. Thus government officials have incentive to increase the happiness of the customers who vote for them, where their customers are only a  percentage of the economy. Taking more resources from the economy as a whole improves the personal situation of a government official. Money given to government officials does not go directly back into the economy. They first allocate large amounts of money for themselves, before spending the remainder of the money on what they want to buy(which does not always increase the happiness of their customers) They only have to please a certain percentage of their customers to guarentee themselves future employment.

3.) Private business participants have to please all of the citizens in the economy to guarentee future employment, whereas government officials only have to please a percentage of the citizens in the economy to guarentee future employment. Thus private spending is more efficient than government spending when it comes to increasing the happiness of all private citizens. Q.E.D.

For example, consider any government industry. See all of the flaws? Compare government education to private education. There’s a reason that one has a better reputation than the other: Incentives.

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