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Do market economics work in the public sector?

In the Netherlands, most public services used to be ran by the government. Think railways, postal service, water supply, health care, electricity, etc. Ever since these services have been privatised, prices of the services have gone up. Am I right in saying that market economics (competition between manufacturers, demand dictates production and price) do not work in the public sector, because the goods/services in this sector are a necessity? The consumer has no choice but to buy the products, to stay alive in modern, western society. Manufacturers don't compete because they will always make a sale, regardsless of the price?

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  • Anonymous
    6 years ago

    Market Economics need a minimum-amount of Consumers(about 35 million), without it, you will always have Monopolies, and continuously have Elite, Worker divides(which you see developing).

    That's what you see in the Netherlands, in every market there's 1 big-player, 1 minor-player, and 2-3 non-factors.

    It's why Public-TV owns the ratings(RTL is a 2nd player, SBS the non-factor), why the Energy Companies get taken over by Scandinavian, and German Energy Giants(they do have 35 million + consumers), and why Healthcare(which only has 2 major-players, but they maintain about 15 brands, it's all just those 2 companies though) is getting outrageously more expensive, eventhough they don't actually provide much care anymore(we should have an opt-out, the insurance premium is so high, putting it in the bank, would buy you better care).

    It's why you need a Government to regulate the Free-Market though(it can't be totally free, or everything will be bought up by foreign companies), because with 17 million possible consumers, we simply don't have the people to sustain a variety, a choice.

    It's why this Governments' attempt to turn the Dutch into British is stupid, we need to focus on a more Scandinavian model, we have the people to sustain that, and Countries like Finland are leading in every quality-of-life, and economic-ranking these days, so it's profitable too.

  • Anonymous
    6 years ago

    Privatization was the wrong measure in economic history. Most of them cannot be realized in full scheme, such as the train project in the UK and Japan.It make only a small group of people richer. As you just said, the price go up. The Netherlands is not an exception.

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