Why Government Should Not Be Run Like a Business

image
Published: 14 Jun, 2013
1 min read

In this Minute MBA video from OnlineMBA.com the narrator lays out three reasons why governments are different from businesses. Many have argued that inefficiency in government can be solved if they were run more like a Fortune 500 company like Apple or Microsoft. However, this approach leaves out some very important realities about governing and civil society.

Reason 1: The profit motive doesn't make sense.

In a democracy the government's fundamental function is to uphold the law equally, and provide for citizens in the 'common good.' A government's 'profits' are actually tax dollars, thereby rendering any expenditures beholden to the people.

Reason 2: Citizens are not shareholders

An average CEO oversees only several thousand employees. The population of the United States numbers over 300 million. Likewise, the average shareholder does not get to vote for their company's leadership or have a say in company decisions.

Reason 3: Constituents are not customers

Businesses can cater their services to targeted types of customers. A government needs to represent every citizen.

You Might Also Like

Trump sitting in the oval office with a piece of paper with a cannabis leaf on his desk.
Is Trump About to Outflank Democrats on Cannabis? Progressives Sound the Alarm
As President Donald Trump signals renewed interest in reclassifying cannabis from a Schedule I drug to Schedule III, a policy goal long championed by liberals and libertarians, the reaction among some partisan progressive advocates is not celebration, but concern....
08 Dec, 2025
-
5 min read
Malibu, California.
From the Palisades to Simi Valley, Independent Voters Poised to Decide the Fight to Replace Jacqui Irwin
The coastline that defines California’s mythology begins here. From Malibu’s winding cliffs to the leafy streets of Brentwood and Bel Air, through Topanga Canyon and into the valleys of Calabasas, Agoura Hills, and Thousand Oaks, the 42nd Assembly District holds some of the most photographed, most coveted, and most challenged terrain in the state. ...
10 Dec, 2025
-
6 min read
Ranked choice voting
Ranked Choice for Every Voter? New Bill Would Transform Every Congressional Election by 2030
As voters brace for what is expected to be a chaotic and divisive midterm election cycle, U.S. Representatives Jamie Raskin (Md.), Don Beyer (Va.), and U.S. Senator Peter Welch (Vt.) have re-introduced legislation that would require ranked choice voting (RCV) for all congressional primaries and general elections beginning in 2030....
10 Dec, 2025
-
3 min read