When the People in Charge Don’t Believe in the Institution They’re Leading, of Course Everything Craps Out

I’d like to see a few corporations appoint CEOs and CFOs who think the corporate model is inherently flawed and unable to deliver goods and services in nearly as efficient a manner as the public sector. I’ll bet you anything those corporations fail to do much of anything efficiently.

In case you’re wondering, I’m making an analogy to this (h/t Jason):

Fox Business host John Stossel on Sunday asserted that most government was unnecessary because companies like Walmart would spontaneously provide assistance to disaster victims “in many more ways” than the Federal Emergency Management Agency (FEMA) could.

“Ever feel like government makes too many plans that come to naught?” Fox News host Tucker Carlson told Stossel during a segment on Fox & Friends. “It’s kind of a bold idea. You’re saying that not every human activity needs to be planned from above. Some things spontaneously work themselves out pretty well.” Continue reading

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The Thing About Privatization

I often hear that the private sector can handle things better than government, with the implication being that government rarely, if ever, gets anything right. Here’s the rub, as I see it: The process of privatization requires handing over public functions, sometimes including the outright sale of public property, to the private sector. This process is necessarily performed by the government.

Why are people so sure, if government generally screws things up, that they won’t also screw up privatization? Why should I trust a company that our incompetent, ineffective, inefficient government selected to take care of things? Isn’t the mere fact that the government thought they were up to the job evidence that they are not up to the job at all?

Repeat this argument as necessary until libertarian heads explode.

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Where the Government Creates, the Private Sector Sexifies

I mean “sexify” in the sense of “make marketable” or “desirable”–“sexy,” to use the parlance of our times. I am specifically referring to the internet. Al Gore did not invent the internet, and he never claimed he did. It was actually a decades-spanning effort of government agencies and private companies with government contracts, gradually building computers and networks that could eventually integrate to create a truly decentralized, global system.

768px-Internet_map_1024

Partial map of the Internet based on the January 15, 2005 data found on opte.org. Each line is drawn between two nodes, representing two IP addresses. The length of the lines are indicative of the delay between those two nodes. This graph represents less than 30% of the Class C networks reachable by the data collection program in early 2005. Lines are color-coded according to their corresponding RFC 1918 allocation as follows:
Dark blue: net, ca, us
Green: com, org
Red: mil, gov, edu
Yellow: jp, cn, tw, au, de
Magenta: uk, it, pl, fr
Gold: br, kr, nl
White: unknown

Many of the essential components of what we now call the internet actually would have been foolish ventures, had private companies undertaken them. Perhaps it was a gamble by the government, but it was a gamble that paid off big. According to Farhad Manjoo at Slate:

In 1960, an engineer named Paul Baran came up with the idea of a packet-switching network. Baran was working for the RAND Corporation, a government-funded think tank, and he’d been looking for ways to create networks that would survive a disaster. Baran saw that the country’s most basic communications infrastructure—especially the telephone network maintained by AT&T—had several central points of failure. If you took out these central machines, the entire network would fail. His insight was to create a decentralized network, one in which every point was connected to every other point in multiple ways—your message from New York to San Francisco would get split into packets and might pass through Chicago, New Orleans, Atlanta, Tampa, or St. Louis. If one of those nodes were taken out, most of your message would get through, and the network would still survive. Continue reading

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