Re: British Politics Guide
Posted: Mon Jan 26, 2026 5:47 pm
alice wrote: ↑Mon Jan 26, 2026 2:38 pm There's also the thinking, which is very common in British media and political circles, that "Government" == "public sector" == "inherently irredeemably inefficient and ultimately and inevitably nothing more than a gross waste of taxpayers' money", and doing it privately will, obviously, simutaneously cost one-tenth and deliver ten times. because of "the discipline of the market", or something.
Oh, an excuse for me to post my Opinion - it's the kind of Opinion that starts with a capital "O" - on state/government contractors. It's an Opinion I formed a while ago, but I think it was confirmed and strengthened by the recent shenanigans of the contractor company which is theoretically supposed to take away the wastepaper around here.
Let's start with the claim that alice alludes to. There is a case to be made that competition in the market combined with the profit motive motivates businesses to do their best. It's not as clear-cut as the free market theorists say it is, for reasons I won't get into for now, but you can make the case.
But this can only work if the users of a product can freely choose between buying the product from different possible suppliers. In a situation where a business has a captive audience of people who can't avoid buying from it, the whole argument falls apart, because the business no longer has to motivate customers to stay loyal to it.
In fact, once you're a captive audience for someone who's selling you something, you're the less likely to get decent quality, the more that someone wants to maximize profits. After all, quality costs money, and the more money a business spends, the fewer profits it can make. That touches on Lērisama's point.
Do government/state contractors have to compete for customers? No, they just have to convince specific politicians to keep confirming their contracts. They don't have to do that by providing high quality. They can promise the politicians low costs, which, of course, automatically means not putting all that much money into their product. They can simply bribe the politicians. They can be the politicians' cousins. They can send the most physically attractive of their women employees to the straight men among the politicians. There are many ways. Few of which involve being serious about high quality.
For a contractor business, the general public, to which it is supposed to deliver goods or services, is a captive audience. See above for what that means.
Regular private businesses and regular state agencies each have their upsides and downsides. The upside of a regular private business is that it has to compete against other private businesses, which means that it might be motivated to keep its customers happy, so that they don't run away. The downside of a regular private business is what Lērisama mentioned: it has to spent a part of its budget on profits, which means that it has less money left to spend on quality.
The upside of a regular state agency is that it can spend its entire budget on doing whatever it's theoretically supposed to be doing. The downside of a regular state agency is that it usually doesn't have to compete.
It follows that a contractor business combines the downsides of a regular state agency and a regular private business, and has neither of their upsides.
Finally there's the question of whether a state contractor business should be called a "business" in the first place. After all, its money still comes from the state's budgets. An entity which gets its money entirely from the state is for all intents and purposes a state agency, even if the law officially treats it as a private business.
The main practical difference between a regular state agency and an officially private state contractor business is that, if the people in charge of a regular state agency take some of the money in the agency's budget and pay it out to themselves, that's called "embezzlement", while, if the people in charge of an officially private state contractor business take some of the money in the agency's budget and pay it out to themselves, that's called "paying out dividends". So the whole practise of having state contractors provide public service is basically just legalized embezzlement.
Sorry if I only told you things you already know, but I had to get that off my chest.
