Supply and Demand: Public Vs. Private Sector Realities

Employers in the private sector have to balance supply with demand. When demand is down, employers have to reduce supply which often means having to reduce staffing. If they didn’t follow this common sense business model they would be out of business and we wouldn’t be able to get that special plastic bag or those new golf shoes we have always wanted.

Of course some employers become greedy. But, I don’t believe that most business people wake up in the morning with the goal of downsizing and letting employees go. Yes, it is unfortunate that some people have to lose their jobs. But, in many cases, it is necessary for the success of not only the company but the health of the nation. When the nation stays healthy, new jobs become available in the private sector and those who were laid off have an opportunity to move forward.

On the other hand, the public sector does not have to worry about supply and demand. When the economy goes bad, the government rarely lays off public employees (unless the government is trying to punish the American people and opposition legislators as in the case of sequestration). Generally, there is no incentive for government to reduce expenses and staff size because all it has to do is raise taxes. The government knows the American people will take up the slack. There is rarely, if ever, any real desire by either Party to reduce spending and staffing levels.

While some private sector employers become greedy, MANY public sector leaders become greedy. The difference is that in the case of government, it is MY money that they are being greedy with. The government has the same attitude voiced by the great Alfred E. Neuman of Mad Magazine fame: “What, me worry?” They know there is more money where that came from!

Alfred E. Neuman

We all pay for this lack of common sense.

As we watch government fail again and again to bring balance to expense and revenue, we also see many political leaders blaming the private sector for America’s economic woes. This despite the fact, that it is most often the government that causes much of the economic downturn and lay offs of private sector employees due to legislation, regulation, and litigation. So rather than blame lay offs on private business, let’s put the focus where it should be–right back on government.

It is time to spend less time regulating business and more time regulating government.

About Doc

I am a Psychologist and a veteran of the Vietnam War. I work with abused children and with agencies which try to both prevent abuse and to empower those who have been abused. I feel strongly about child abuse and take every action I can to prevent it and to support the children I work with who have experienced it. I also feel strongly about politics and especially the course being taken by our nation. I believe that America is at a critical point in its development. How we answer the challenges from Islamic fascists and from our own internal enemies in the media, government, and academia will determine America’s future and the future of our children. I believe that if we don’t take the correct course now, America will go the way of Europe and that we will not reach the potential set out by our founding fathers. I believe that it is now getting serious. My gravitar is from "Darkman".
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