Following my post, Anything Government Can Do, The Free Market Can Do Better | An exchange between friends, my friend replied:
In response, I did not say better, but more cost effectively. Cost efficiency does not always equate as better. I can drive a well maintained 10 year old Toyota Corolla more cost efficiently than a new full sized auto, but that does not mean it is a better auto. Secondly, I never said anything about "the unfailing efficiencies of the free market". I believe it is the fact that the free market can and does fail that makes it pure. Government, on the other hand is able to prolong and deny failure by extending budgets, increasing debt and raising taxes. 45 out of 50 states are now insolvent and several are headed for bankruptcy while still spending at record levels. That is not "philosophy', but is backed up by government audits.A federal employee is paid 64.47% more (including benfits and pensions) than a free market employee with full benefits doing the same task. By the Governments on records there were 72 Billion dollars spent on improper payments in 2008. The government also discovered that 22% of the programs they finance (at a cost of 123 Billion annually) fail to show any positive impact on the population they serve. The beauty of the free market, is that it can not operate like this. Most free market enterprises operate on less than 6% profit and would long since be out of business if they operated so inefficiently. Many of the businesses I shooped at or resturants I ate in 10 years ago no longer exist. I am not aware of many (any) governmental agencies that have been aloowed to fail in that time.