Running Government Like a Business: Not

I have long thought that the idea of "running government like a business" is a fallacy, because they are not the same things. Their reasons for existing are different and as a result their ways of doing business need to be different.

Here's a simple example:

In business, managers are not used to
having their decisions questioned.

• In business, if you want to buy some big-ticket item, you basically negotiate to get the best deal, including various incentives and special treatment. I am NOT talking about bribes here, but simple various inducements that can be used to get the lowest price (assuming equal quality).
• In government, if you want to buy something, you jump through many hoops to ensure fair treatment of all vendors and no behind-closed-door deals.  You generally have to pick the bidder offering the lowest price (unless there are questions about quality) but you often pay more than you would if you could engage in private negotiation.

This example illustrates a bigger principal, that in private business, managers are not used to having their decisions questioned.  

In private business, the end goal is profits for owners/investors, which you provide via the products you sell.  But for managers, the "customers" are the investors, not the consumers. Generally the ends (of profit for investors) justify the means and mangers don't have to worry much about accountability to anybody other than the investors. Because this has led to problems in the past, we have all those gosh-darned governmental regulations that limit the "means" if they get caught.

In government, the "customers" are the citizens and they are served via the various governmental programs.   The service is not (supposed to be) a way of achieving some other outcome goal.  The ends are fair and equal treatment of citizens, within the scope of the individual governmental program or agency.

This business mindset of the ends justify the means and we can do anything, as long as we're not caught, is the logical outcome of "running government like a business."

This is what I see happening in the Trump White House.  You have a bunch of folks who are not used to external scrutiny, and are not used to being questioned.  They are used to keeping things secret.  They likely see the "customer" as being the big campaign contributors.

The result is inept decision-making, beginner's mistakes, and failed attempts at power politics.