Why is private enterprise vastly more efficient than public organizations?
The most elemental answer: competition! There is one inefficient Post Office. There are many competitors in the package delivery service (FedEX, DHL, UPS, etc.) The Post Office is subsidized: the private firms must fight it out for market share, efficiencies and profit. They can go out of business, the Post Office never will. Every state run airline (Alitalia, Air France, Varig, etc.) is bankrupt. At the same time new private carriers (Easy Jet, Ryan Air, etc.) are entering the market and thriving. Competition creates opportunities and penalizes static business models. Computer Associates, Wang, Digital Equipment, Gateway and many other companies, were ahead of Dell Computer in assembling and marketing the personal computer. Dell has succeeded spectacularly while almost all of the early leading pioneers are either out of business, significantly downsized, or merged. Dell entered this brutally competitive product category with a fresh business model (customization of production and dire
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