What are the conditions needed for a state run company to work? When should a country create one?

[BrentWil]

Two basic and interrelated questions. First, what are the conditions needed for a state run company to work? In other words, when does it provide a better serve to people and make economic sense? When can it be self supporting.

Next, when should a country create a state run company? What conditions are needed to make it make sense?

[BrentWil]

1. No one wants to join in on this? NT

[leftstreet]

2. What are your ideas?

[BrentWil]

3. I don't generally think it makes sense to have a state run company

I think that you create a social net by giving directly to people, not creating institutions that are generally less efficient then the private sector. I tend to like Robert Rich's reverse income tax that would directly give to the working poor and the middle class. I would be for privatization of the Post Office, for example.

However, given that position, I was hoping for a good debate.

[leftstreet]

4. So you would disband the Veterans Admin and just give people vouchers?

:shrug:

[BrentWil]

6. As a military vet...

I bet I would get more benifits. There are currently 21.9 million vets in the United States. (http://www.infoplease.com/spot/veteranscensus1.html) The department of Veteran budget is 132.2 billion. If you divided that up and just gave it out it would mean $6036.52 a year for every vet if divided equally. That is more benefit then I will ever see from the VA.

With that said, I don't think that is what should happen. You shouldn't divid it equally. Some have suffered much more then others. However, I wouldn't be opposed to turning some of their programs into vouchers and supplementing their income instead of trying to run health care through a government entity.

And now with THAT said, that isn't what I am talking about. I am talking about a state run entity that sells a product to the public. The public then buys it. Think the Post Office or PEMEX.

[kestrel91316]

5. You just wanna give us all money so we can hire our own personal couriers??

I want some of what you've been smoking.

[BrentWil]

7. Who said that?

Someone will move things for you, even if you privatize the post office. There is a thing called Fed ex now, you know.

[izquierdista]

8. When the country wants a uniform service

Like they wanted when the Postal Service was created. They didn't want rural people paying market rates for mail delivery, so a first class letter is the same price from anywhere to everywhere.

Pulling a quote from a Star Trek movie, "when the needs of the many outweigh the needs of a few".

As an aside, once it is decided that the state should run the company, there is no need for it to be separately accounted for as a "profit center". They simply have to decide to price the service or products affordably and if it runs a surplus or deficit during the accounting year, they can realize a gain or cover the loss from the general fund and adjust prices for the following year.

Mexico's PEMEX runs pretty well, despite the level of corruption. They certainly give Mexicans less reason to gripe than private oil companies do to Americans.

[BrentWil]

9. Certainly...

I would take a little bit of a twist on this. I think it has more to with when there isn't an obvious business model and the state needs it to work for the betterment of all. The early post system was needed for the same reason that the Highway system was needed. It was needed for economic activity to tae place.

Certainly, you can run a business out of the general fund. The question is, does it make sense? How does that effect the market and the taxpayer?

One of the problems with PEMEX is overlapping governmental power with a business that can screw people. Where is the legal recourse in Mexico for when PEMEX screws the individual.

[izquierdista]

11. ...when PEMEX screws the individual

I'm trying to think. In two years of living in Mexico, I don't think I ever "got screwed" by PEMEX. They probably have done things that disadvantaged some individuals or groups of people though. The recourse would have to be the same as it is in any civilized country -- the courts. Then it is a question of how fair and independent the judiciary is.

[Johonny]

10. I think a state should create a company when a successful one leaves town

Just take the companies factory and processes over and run it yourself. I think too many towns spend countless $$ begging companies to slow their obvious eventual withdrawal from their town, when they should instead say fine don't let the door hit you in the *. By the way we are imminent domaining your factory and running it ourselves.