We humans consume a lot of goods and services: cars, homes, food, healthcare, vacations, tech support, security systems, electronics, movies, video games, and the list goes on and on. We have three places to go to in order to get these needs and wants fulfilled. First, we can provide them for ourselves, make our own car, grow our own food, etc. Some items are more practical than others to provide for ourselves. Second, we can purchase these goods or services from a business that provides it. Lastly, we can get the good or service from the government.

Providing for ourselves is a wonderful route to take when possible and practical. But in modern society it is often not practical to provide for ourselves in all the areas we desire. Building our own car, for instance, while very impressive would be impractical for the majority of us. The big question is what is the trade off between turning to business or government to be a provider of goods and services? When we enter into a relationship with a provider of a good or service there must be power on both sides of the relationship to ensure that one party does not exercise undo influence on the other. If one side gains too much authority the other party can be abused or neglected in ways that are inappropriate.

Given this, here are the reasons why keeping our goods and services in the hands of business rather than government is better for the people:

1. Business cannot compel someone to purchase. Business cannot pass laws which would require a citizen to become a consumer of any given product or service. Governments have the power to pass laws requiring citizens to act in certain ways.
2. If business sells a harmful product a citizen can appeal the matter to courts for retribution. Businesses are incented to avoid this costly event which could put them out of business. Governments are difficult and sometimes impossible to sue. Governments have no incentive to avoid this because the tax payer will foot the bill for the defense costs.
3. If I fail to pay a business they can cancel my service, take the matter to court to recover costs, or reposses the product. Government has the ability to imprison me for such offences. Government has the power of the police force at their disposal. This service costs them nothing to use; it is fully funded by the tax payer.
4. Businesses are incented to be cost effective and efficient. If they are not able to offer a product or service worthy of buying and do so in a way that allows them to make a profit, then they will go out of business. Government has the power of taxation. Government is unconcerned with being cost effective or running deficits and debts now and in the future. There is no penalty for doing so. Whereas a poorly run business can and will go out of business the government cannot.
5. Business can be regulated by government agencies without a conflict of interest. In this way the government can act as an advocate for the citizen ensuring ethical practices by the business. Government has a terrible record at regulating itself. This is due to the pervasive political nature of the organization. Everything in the government involves politics and partisanship. The government will rarely be effective at regulating itself on behalf of the citizen, its own interests get in the way.
6. The possibility of making profit incents many people to create businesses that compete with one another in the attempt to gain the patronage of the citizen and thereby make profits. This creates the marketplace of choice wherein many flavors, styles, and sizes are created by many businesses. This allows the consumer to find the best product or service available for their needs and wants. The government does not have this motivation. Since the government cannot be put out of business they have the ability to offer only those products and services they want to, regardless of the desires of the consumer.

There is a very important role for government – to protect and preserve the rights and freedoms of the people. The government should do this from enemies foreign and domestic. The armed forces and intelligence agencies should be focusing on enemies foreign and other government agencies like congress, the courts, the FDA, the FCC, and many others should be focused on domestic enemies including businesses that would participate in unethical practices. This will allow ethical businesses that are seeking fortune through innovation and efficiency to thrive. This would keep the critical balance of power between those who consume goods and services (the people) and those who provide goods and services (businesses) and keep those who should be representing and protecting us (the government) from having conflicting interests and politicizing the marketplace.