The Flawed Notion of Managing Government Like a Business

March 7, 2025 - 19:51

Politicians love to spew the line that they will "run government like a business." This sentiment has gained traction over the years, appealing to voters who seek efficiency and accountability in public administration. However, the reality is that government and business operate under fundamentally different principles.

While businesses prioritize profit and shareholder value, government must focus on public welfare and social equity. The pursuit of profit can lead to decisions that prioritize short-term gains over long-term societal benefits. For instance, cutting essential services to reduce costs may boost immediate financial performance but can harm the most vulnerable populations.

Moreover, businesses can pivot quickly in response to market demands, while government processes are often bogged down by bureaucracy and the need for public input. This difference can hinder responsiveness and adaptability in governance.

Ultimately, the idea that government should mimic business practices oversimplifies complex public needs and risks undermining the very foundations of democratic governance. As society continues to evolve, it is vital to recognize that effective governance requires a unique approach, one that prioritizes the common good over profit margins.