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genderwhy | 3 years ago

Walmart needs to either earn a profit or use the item as a loss leader to earn a profit elsewhere. A government can provide services without expecting them to be profitable. (See: roads, licensing, schools, transit, etc.)

There's no reason California couldn't say, "If you need insulin, and you live in California, it's available for free." Assuming that's what the taxpayers want.

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anonuser123456|3 years ago

> A government can provide services without expecting them to be profitable

Governments are just collections of people organized by incentives, just like corporations.

In corporations, the profit incentive pushes the organization to minimize the cost of production. At the same time, competition puts a ceiling in prices. Poorly organized, staffed and managed businesses go bankrupt.

In a government, there is no incentive to minimize costs. Next years budget is contingent on isi h all of this years. Leadership positions are politically appointed, not based on competency. Employees are not rewarded with huge bonuses or promotions for competing projects on time or ahead of schedule. Budgets can just be sink holes, as long as they are politically expedient and have the proper messaging. Better ideas are routinely stifled by political agendas, and investment is singular; one department gets all the funding and there is no competition.

Look at Venezuela as an example. When the government nationalized the oil industry, it completely fell apart. Production dropped off hugely.