Good evening everyone. It's been offline for a few days. Mostly because I was busy. And I am still a bit occupied so I probably won't be able to post in the frequency which I did before. Although I still wonder regularly whether you guys even like my posts or not. If you do or if you don't, feedback is always welcome. Anyway, as aided by my busyness, I obviously missed the previous contest. So I went back to check exactly what topics I missed. One in particular caught my eye. And that is the private sector. So I thought yes I could talk about it. Not that I know a lot, but I know some things or at least how they work.
So my country and probably yours too is an average fan of capitalism. I went ahead and assumed that because there are very few countries in the world who officially practice communism. So in the capitalist world, innovation and accommodation is aided by the private sector. The basic line is that the government owns everything in a communist society, whereas in a capitalist society, People are always encouraged to buy off industries for themselves. Because whatever money they make they get to keep a bulk of it. Unlike the Communist government factories where you only get paid minimum or average wage and most of the times far worse than those conditions. Now the reason to bring up The word communism, is because in that system people can't privately own companies or industries. And private businesses have the added incentive at the personal level. A company or an industry is more inclined to work harder and make the company successful in order to gain maximum profit. While this process also leads to more production and more goods for the consumers, which in turn keeps the economy chugging along. While, if a company is owned by the government, then there is the consideration of mitigating costs because this is going straight from the National Treasury. Also, we have seen over the years that these companies only produce enough goods to meet the demand. And no surplus. But in today's world things have changed. The private entry economy of capitalism is falling behind or at least letting the government influence communism to catch up. China is probably the biggest and greatest example of find out there.
So yes, private entities are good for businesses to grow and economies to boom, but that is not the only solution towards a robust economy. Government subsidies and stimulus can also help the economy thrive. It actually all depends on who wants to succeed more.
Most private companies operate based on profit. They might be good for us in general but the prices would not be friendly. Government owned establishments have their perks.
Yes, that is true. But in a consumer based economy, like so many in the world, especially 1st world countries, private companies outweigh their disadvantages.