"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27, 2010


Tuesday, July 20, 2010

Competition and Government Privatization

One of the most troubling and long lasting effects of politically dominated service organizations which most of us call “GOVERNMENT” is the embedded manner in which bad processes and procedures become accepted and maintained. Without the constant discipline of competition there is just no motivation to change; to improve; to disband the antiquated methods of the past and move to the more efficient methods of the present.

What is competition? Without looking at the dictionary, TheFundamentals would describe it as the force by which the combination of innovation and human learning join to replace the old with the new. In practice, competition is why we can travel anywhere on the planet in a matter of hours; walk into a grocery store and have more choices in one aisle than our great grandparents had in the entire city and live to be 80 or 90 years old and burden the society with our failing knees, backs, shoulders and coronary arteries.

Where do you find competition? Look around. Usually it is everywhere. Do you want Heinz ketchup or Del Monte? Or Hunts? Or Red Gold? Or the house brand? Want a new pair of jeans? OK. Levi’s? Ralph Lauren? Wrangler? Which kind? The ones that make your butt look rounder, flatter, smaller, bigger, higher, lower, etc?

Why do we like competition? Well, not everyone does but we will get to that in a few sentences. Most of us like competition because we benefit from competition. It means more choices; better products and services; cheaper prices or better value, meaning more for your money, and the ability to get things for ourselves and our children that our ancestors were not able to get. We call this process an improved standard of living. It simply means that we are able to move higher up the human accomplishment ladder (we snitched this concept from Abe Maslow) from survival to enlightenment, and then pester people with our essays on the not so improved human condition.

Now back to reality. Who doesn’t like competition? Well, there are quite a few who have done their best to keep it at bay and, it appears, that their numbers are growing in our land while their numbers are declining in other lands. Clearly, the growing economies of China, India and Brazil and others have started a process of wealth creation and competition that is changing their societies and improving the standard of living of their citizens.

Closer to home, we, who pioneered many of these competitive activities and who exported the very products, services and processes by which they benefitted our own population, now find ourselves trailing in the broad area of competition. And we find that one common area where the products and services are most inefficiently provided; most poorly performed; most disregarded by the consumer who is used to many choices; are coming from the politically dominated service organizations that we call “GOVERNMENT.”

So, how do we bring competition to government? There are many paths to accomplish this goal. Privatization is the path we at TheFundamentals would choose. But sometimes it is best to just learn from someone who is doing it. The new governor of New Jersey, this is the fellow who has said that he is in his job to get things done, not to be reelected, is moving toward privatization. Read all about it at: http://www.northjersey.com/news/politics/070910_Christie_looks_to_privatize_motor_vehicle_inspections.html

This Fall, when you have a chance to ask one of the many politicians who want your vote a question, ask them this, “Which government services will you move to privatize? Be specific, please. Name the services and the time schedule.” Their answer may well tell you if they like competition. If they don’t consider finding another candidate, one with the perspective of the new, New Jersey governor. Someone who embraces competition. Come to think of it, ask yourself this, "Which politician do I know who has embraced competition and has promoted privatization?"  Competition is a fundamental!  One of the paths to competition is privatization.

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