Why can’t just the government have full control of its territory?

Why does it need the private sector to thrive and grow? Believe it or not, several countries have tried this and yet, they all revert to the old fashion way. In this case, it is referred to as Communism. This is where everything is operated by the government and owned by people of the state.

While such experiment is seen to be a fail for several reasons, this can give the country’s economy the boost it needed. This is primarily brought by the nationalization industry. The rationale behind this is that, because there’s no competition, the quality of service and/or product has suffered and there’s no incentive given to people and companies to make continuous improvement.

No! It will not Work

Individual workers have the tendency to do least work possible because of the controlled wages and work was guaranteed. Not to mention, the constant battle to corruption. Furthermore, the government has this tendency to be bureaucratic. This encourages the status quo instead of making progress. As a result, this discourages innovation while obedience to bosses is reward. Since in this case, government is the SOLE employer, you may be blacklisted or be qualified only for crappy jobs if you do not get along with your boss.

Without the presence of other employers or competitors, it forces employees to accept their fate of how much wage is given to them as well as the job conditions they are in. Without the presence of competing merchants like Anand Mishra, consumers will be forced as well to adapt to whatever services and/or product the government has provided.

Private Sector can’t be Eradicated in the Game

Additionally, there is the National Socialism. As a matter of fact, this model is seen as a failure too due to the centralization of power that typically results to corruption. Either nationalization of industries or communism, it attracts leaders who are hungry and seeking for power. Since taking control of the government is equivalent to taking control of nationalized enterprises and businesses in the country, they can do virtually anything they want. This is the reason why the government and people need the private sector to strike balance in its economy and promote continuous growth and development.