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What activities are the proper domain of government and which are best left for the private sector?

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What activities are the proper domain of government and which are best left for the private sector?

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“The legitimate object of government is to do for a community of people whatever they need to have done, but cannot do at all in their separate and individual capacities.” Answering that question today might be a little more difficult. Although it is hard to imagine a service that could not be provided by the private sector, we must apply tests on whether it would be desirable to allow them to do so. These tests have been applied in thousands of cities in the past. Services such as police protection, fire protection, water and sewer service, and electricity have been determined to be so important to the prosperity of all citizens that none other than the municipal government have been deemed appropriate to operate these services. The “information superhighway” presently being considered will likely fall into the same category. The nearest parallel to the decision cities face with respect to the “information superhighway” and the potential value it may carry to a community lies in the d

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