Business > Business and Politics
“I'll keep it short and sweet: family, religion, and friendship. These are the three demons you must slay if you wish to succeed in business.” Montgomery Burns
"When two men in business always agree, one of them is unnecessary." William Wrigley Jr.
- Trump, Musk, and Doge focused on the wrong parts of 'making government run like a business.'
- ✅ Top Reasons to Agree
- They destroyed agencies they didn’t understand, mistaking disruption for efficiency.
- Markets work because inefficient businesses eventually fail — but in government, regulation and oversight exist to prevent destructive failures.
- Running government like a business does not mean bringing in “your team” to arbitrarily cut what you dislike. It means defining transparent, objective criteria to measure whether agencies are meeting public needs.
- They repeated the worst mistake of bureaucrats throughout history: assuming that power alone gave them special wisdom to know which agencies should be gutted, instead of measuring real costs and benefits.
- DEI should have been marketed as anti-nepotism and ensuring fair competition, equal starts in public schools, and equal access to the middle class, instead of pitting groups against each other.
- Mitt Romney was a better business manager than a politician — and government should run more like a business, and less like a political machine.
- Reasons to agree:
- Romney embraced the vocabulary of business — the rhythm of charts, data, and boardroom presentations
- He viewed waste and inefficiency almost in moral terms, as problems to be eliminated.
- Government should focus on results and execution, not ideology or political credit-claiming.
- Romney openly valued analysis and data. He treated issues like transportation, healthcare, and education as analytical problems that could be fixed — much like turning around an unprofitable company.
- The government should not protect companies from fair regulation, competition, or failure. If you are too big to fail, then you are too big to exist.
- Reasons to agree:
- Moral hazard: Protecting giant firms rewards reckless behavior (2008 bailouts proved this).
- Distorted markets: Propping up failing giants punishes smaller, more innovative competitors.
- Fairness: No small business is “too small to fail.” Holding giants to a different standard is rigging the system.
- Many businesses add no value, no innovation, and only rent-seek and manipulate (such as insurance); these should be replaced with government programs. Likewise, government agencies proven to be wasteful should be replaced with private contractors. Admitting both can be true is a basic sign of sanity.
- Reasons to agree:
- Efficiency test: Both government and business must justify their value; inefficiency in either case should not be sacred.
- Real-world examples: Private contractors often outperform bloated agencies, while public programs like Social Security outperform private retirement schemes.
- Consistency: Admitting both scenarios are possible shows sanity and avoids ideology.
- Even though George Bush had an MBA, he failed to run the government like a business and instead catered to special interests.
- Reasons to agree:
- Politicized DOJ firings: The DOJ Inspector General concluded the 2006 U.S. Attorney removals were mishandled and politically driven—poor management, not efficiency.
- Medicare Part D “non-interference” clause: 2003 law barred Medicare from negotiating drug prices—benefiting industry over taxpayers.
- Katrina leadership failure: FEMA chief Michael Brown’s qualifications and response drew withering scrutiny after Katrina.
- The government shouldn’t protect firms from fair regulation, competition, or failure (“too big to fail” → “too big to exist”)
- Moral hazard is real: GAO found crisis responses increased expectations of support for megabanks, weakening market discipline—classic “too big to fail.” U.S. Government Accountability Office
- Policy community agrees: CRS summarizes why TBTF persists and why reducing it is a core policy goal. Congress.gov
- Some sectors mostly rent-seek; replace them or fix incentives—and outsource wasteful agencies
- Tax filing rent-seeking: For 20+ years, the tax-prep lobby blocked simpler filing (e.g., California’s ReadyReturn and the IRS’s Direct File). WIREDProPublicaNextgov/FCW
- PBM “spread pricing” examples: State audits found hundreds of millions skimmed in opaque spreads (e.g., $224.8M in Ohio Medicaid). NASHP
- If government is wasteful, audit & contract out: CMS is expanding audits to claw back Medicare Advantage overpayments—evidence that rigorous oversight and contracting discipline can save money. Centers for Medicare & Medicaid Services+1Healthcare Dive
- “MBA” ≠ efficient governance (re: George W. Bush)
- Politicized DOJ firings: The DOJ Inspector General concluded the 2006 U.S. Attorney removals were mishandled and politically driven—poor management, not efficiency. Office of the Inspector General+1
- Medicare Part D “non-interference” clause: 2003 law barred Medicare from negotiating drug prices—benefiting industry over taxpayers. Connecticut General Assemblyrpc.senate.gov
- Katrina leadership failure: FEMA chief Michael Brown’s qualifications and response drew withering scrutiny after Katrina. WIREDWikipedia
- Both parties have corruption; GOP especially shifted from pro-market to pro-incumbent
- Tax filing again: Industry successfully lobbied to stop government-provided, simple filing for years; many Republicans opposed Direct File in 2024. ProPublicaNextgov/FCW
- Auto dealer protection: GOP-backed franchise bans (often bipartisan) block EV makers’ direct sales; FTC staff has urged repeal to restore competition. Federal Trade Commission+1Reuters
- Trust-busting Republicans set the precedent (Teddy Roosevelt)
- Northern Securities (1904): Roosevelt’s DOJ dismantled a dominant railroad holding company—defining the “trust-buster” role. theodorerooseveltcenter.org
- Duopolies can be as harmful as monopolies
- Credit cards: Visa & Mastercard long set swipe fees; litigation and 2024 settlement underscore market power costs to merchants/consumers. FortuneSenate Judiciary Committee
- Airlines: GAO documents rising concentration and its effects on service and prices in many city-pair markets. U.S. Government Accountability Office
- Lobbying by incumbents blocks efficiency-boosting innovations
- Simple tax filing: ReadyReturn and Direct File fought by tax-prep firms despite high user satisfaction in pilots. WIREDProPublica
- Municipal broadband: Telecom-backed state laws in ~16–17 states still restrict city networks that could add competition and lower prices. BroadbandNowUrban Institute
- Favoring specific competitors breeds corruption and higher costs
- Sugar program: Federal supports keep U.S. sugar prices above world prices, costing consumers ≈$1B net per year. U.S. Government Accountability OfficeEconomic Research Service
- Jones Act protectionism: Cabotage rules shield domestic shipbuilders and raise shipping costs—classic incumbent protection. (Debated on security grounds, but many analyses flag efficiency losses.) EconofactCongress.gov
- “Run government like a government” (serve the public, not donors)
- Regulation with massive ROI: EPA’s Clean Air Act analyses show benefits outweigh costs by ~30:1—life-years saved, productivity up, health costs down. US EPA+1
- Merit matters—but many start on the 50-yard line (safety nets & mobility)
- GI Bill evidence: Post-9/11 GI Bill raised veterans’ college completion and earnings—leveling the field and boosting productivity. NBER
- Health coverage & entrepreneurship: Research links ACA/Medicaid expansions to reduced job lock and higher self-employment for some groups. SAGE JournalsAmerican Economic Association
- Pro-market ≠ pro-business
- Dealer franchise bans: Good for dealers, bad for competition and consumers; pro-market policy would allow direct sales. Federal Trade Commission
- Municipal broadband limits: Protect incumbents, not markets. BroadbandNow
- Romney showed data-driven efficiency is possible
- Measured outcomes: After the 2006 reform he signed, Massachusetts’ uninsured rate fell to the lowest in the nation (≈2–3%). PMCbluecrossmafoundation.org
- “Run government like a business” doesn’t mean anti-regulation
- Smart rules raise efficiency: Clean Air Act benefit–cost studies (retrospective and prospective) consistently show massive net gains. Congress.govlivebettermagazine.com
- Smart regulation prevents corruption, monopolies, and consumer harm
- Credit-card routing/fee scrutiny and antitrust actions demonstrate how rules can discipline market power and lower costs. Senate Judiciary CommitteeFortune
- Free markets + safety nets beat purism
- Safety nets encourage risk-taking: Evidence of entrepreneurship/job-lock reduction when people can keep coverage outside employment. SAGE Journalschir.georgetown.edu
- Inefficiency is often deliberate because it pays someone
- Tax complexity benefits tax-prep firms; sugar quotas benefit producers at consumers’ expense. ProPublicaU.S. Government Accountability Office
- Efficiency helps society even if some firms lose rents
- Air pollution controls: giant net benefits despite compliance costs for incumbent polluters. US EPA
- Measure public services with objective criteria
- Massachusetts reform tracked coverage and outcomes; transparency made performance visible and improvable. PMC
- Cost-benefit beats ideology or lobbying