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Unread 9 Jul 2009, 19:42   #16
dda
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Re: Is Bigger Government Better

Because government enterprises do not have to show a profit, they can, and usually do, have a competitive advantage over private companies. Government can subsidize their own enterprises and, should they desire to, can make it entirely impossible to compete with the government run intety. If nothing else, government controlled enterprises do not have to pay taxes, rather a large advantage right there.

Also, paying dividends to share holders, at least in the U. S., is largely to large retirement funds, thus providing the retirement funds for many groups, including, but not limited to, most government retirement plans. Private profits drive the prosperity which allows government to function in a meaningful fashion.
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