Private Sector vs. Public Sector: Comparing Effectiveness

If you were mailing an extremely important package, you'd probably trust FedEx more than the U.S. Postal Service. But why? Is it because FedEx is a private company, while the post office is run by the government? What are the differences between the "private sector" and the government sector? Why does it matter? Find out in this animated two-minute video. 
Donate today to PragerU! http://l.prageru.com/2ylo1Yt

This video is part of a collaborative business and economics project with Job Creators Network. To learn more about JCN, visit https://www.jobcreatorsnetwork.com.

Joining PragerU is free! Sign up now to get all our videos as soon as they're released. http://prageru.com/signup

Download Pragerpedia on your iPhone or Android! Thousands of sources and facts at your fingertips.

iPhone: http://l.prageru.com/2dlsnbG
Android: http://l.prageru.com/2dlsS5e

Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys

Join PragerU's text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru

Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful.

VISIT PragerU! https://www.prageru.com

FOLLOW us!
Facebook: https://www.facebook.com/prageru
Twitter: https://twitter.com/prageru
Instagram: https://instagram.com/prageru/
PragerU is on Snapchat!

JOIN PragerFORCE!

For Students: http://l.prageru.com/29SgPaX
JOIN our Educators Network! http://l.prageru.com/2c8vsff

Script:

If you had something really important to mail, would you head to the Post Office, which is run by the government and considered part of the public sector, or would you go to a place like UPS or FedEx, which are private businesses. Politicians in the media often talk about the private and public sectors of our economy but what's the difference? And which one is more effective?

The private sector is made up of businesses or corporations owned by people. The private sector includes malls, grocery stores, and your local diner. To make a profit in the private sector, businesses must earn our money by offering us products and services that we want or need. When businesses have to compete for the same dollars, prices go down because no one wants to pay twice as much for shoes at one store if you can get the same pair cheaper at another place.

On the other hand, the public sector is not supported by profits. It doesn't have to compete for our dollars. Instead, the public sector uses our tax dollars to fund its services. So we pay for these programs no matter how much or how little we use them. The government decides how our tax dollars should be spent in the public sector.

This makes sense for some things. For example, you probably wouldn't want firefighters or police officers competing with one another for your business. In other cases though, this means things cost more or service is worse. The U.S. Post Office has $100 billion in debt and is regularly bailed out with taxpayer money. And the Department of Motor Vehicles isn't usually known for fast, friendly service. In contrast, private companies know that if they offer poor customer service and don't make money, they'll go out of business.

When comparing the private sector with the public sector, it's clear that the market-driven private sector is more efficient. When you don't have to be profitable or accountable, things tend to be more expensive and the service is worse.

So when there's a choice between a private sector or a government service, think about that package you really need delivered.

The video discusses the difference between the private sector and the public sector.

In the private sector, businesses compete for profits by offering products and services at competitive prices.

The public sector is funded by tax dollars and does not have to compete for profits.

This video compares the private sector and the public sector of the economy, explaining the difference and discussing their effectiveness.

The government decides how tax dollars are spent in the public sector.

Firefighters and police officers should not compete with each other for business.

The U.S. Post Office has a significant debt and requires taxpayer money for bailouts.

The Department of Motor Vehicles is not known for fast and friendly service.

Private companies are more efficient and accountable due to the need for profitability.

When choosing between private sector or government services, consider the reliability of package delivery.

The market-driven private sector is more efficient than the public sector, resulting in higher costs and worse service. Consider the pros and cons when choosing between the two.

Private Sector vs.  Public Sector | Short Clips

Private Sector vs. Public Sector: Comparing Effectiveness

This video compares the private sector and the public sector of the economy, explaining the difference and discussing their effectiveness.

00:00:01 This video compares the private sector and the public sector of the economy, explaining the difference and discussing their effectiveness.

00:00:56 The market-driven private sector is more efficient than the public sector, resulting in higher costs and worse service. Consider the pros and cons when choosing between the two.

Want to deep dive into this video?

You might also like...

Chat with any YouTube video