Why Government Should Not Be Run Like a Business

image
Published: 14 Jun, 2013
Updated: 21 Nov, 2022
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.

Latest articles

Trump Trush Social Post on Colbert
Will Politics Kill Late Night TV?
Stephen Colbert’s Late Show is ending after nearly a decade at the top of the ratings. CBS insists t...
18 Jul, 2025
-
3 min read
Ronald Reagan
Just Say No: The Political Hit Job That Killed Cannabis
As cannabis use became more common in the late 1970s, the backlash grew even stronger. A political and religious conservative resurgence was underway after years of liberal ascendancy. That wave would soon bring former California Governor Ronald Reagan to the White House....
18 Jul, 2025
-
8 min read
Political cartoon of a person representing partisanship, unions, the Democratic Party, and Special Interests taking a bite out of New York.
Mamdani, Lander, and Other Partisan Extremists Just Took a Bite Out of NYC’s Democracy
The partisans, unions, and party bosses have won again. Independents, veterans, working people, young people and democracy have lost again. ...
18 Jul, 2025
-
2 min read