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Should Governments Use Private Enterprise To Restructure Their Economies? Essay, Research Paper

In the modern world, countries like Canada and the United States tend to move from the left wing to the right wing. Is this a good thing? Adam Smith’s laissez-faire theory, “The Invisible Hand”, explains the fact that the selfish of all individuals of a society ultimately combine to benefit all of society. People in private enterprise countries have stronger sufficiency and individual initiative, and societies have higher productivity.

Alberta government is introducing Bill 11, which is based on Canada Health Act. This bill is supposed to privatize the heath care system. It would allow for-profit clinics to do minor surgeries and keep patients for extended overnight stays. It will increase our economy because the government can now use the money that is saved from it to pay their debts and for international investments. Alberta’s health care funds have been numerous. They were abused on healing people who caused drunk and drive accidents, people who smoke too much, and people who do drugs. These people do not deserve any free health care. They should be responsible for themselves and pay for their own health care fees.

Many people say that private for-profit health care is less efficient and more expensive than public health care. Private health care would cause people who cannot function in such a competitive environment to suffer. But think about the benefit we will have for the majority people. Isn’t “majority rules” the main theory in democratic countries? Expanding private health care is the only way to cut costs and reduce waiting lists in a public system that has been stretched to the limits by federal funding cuts.

A private enterprise economy creates a competitive environment. People work harder and are more initiative and productive. Let’s take computer as an example. In the old day, high-tech computers were only used in military. Computers controlled all kinds of nuclear weapons, missiles, and space stations. But ever since the free market economy was introduced, computer production grew rapidly. Company like IBM, Intel and Apple were the very first that came up with commercial and home computers. They produced millions of chips every year and the technology they are using is getting better and better. The quality and speed of a computer grow at least 2 times a year. Now different companies also produce different parts of computers. A computer is no longer made by a single company. This creates great competition and great productivity. Any ordinary home computers you can see now are all a hundred times better than the computers that were used on the space satellites before.

China, the country with largest population in the world, now happens to be a backward country. Ever since communism was introduced in China, it has been fallen behind in the world?s economy. China believes public enterprise will eventually be the best economic system. But in fact, Chinese people, who are known as hard working, has become lazy and lost their productive sense. The Chinese government controls everything, even the human rights. Comparing China to its near-by democratic and free market country (also known as their cross-sea province) Taiwan, which started economic reform just at the same time China did. Taiwan is now producing US$ 12,333 per capita GNP while China is only producing US$ 738 per capita GNP. Just think about that Taiwan is a very small Island that only has 22 million people in it and it is producing higher GNP than that of the huge China. Comparison of China and Taiwan is unique because they are both Chinese but have opposite political and economic system. As statistics shown, Taiwan has become a much more successful country than China in economic growth.

Private enterprise economic system allows small business. Microsoft, the biggest computer Software Company in the world was also built from the ground up. Bill Gate, the guy who created Microsoft, started the business when he was still a university student. He believed he would make an effort and changes in the computer world. So he dropped out of school and formed a small company. As we all can see that this small company now makes the most revenue than any other big corporations in the world. This means that people like you and me all have a chance to make a difference in our lives.

The American government is now against that Microsoft has been illegally wielded monopoly power. But in fact, the company is also facing rival operating systems such as Linux and BeOS. The company admitted that at present the rivals were not viable alternatives to Microsoft, but the software market could be very different in one or two years. If the private enterprise economy were not introduced, we would not be able to have the technology we have now because when the government controls everything, no one would be productive and initiative. If there were not a company like Microsoft, we would not be able to have amazing multimedia computers now. Microsoft’s productivity proves that the free market system is the best for a country’s economy.

Thus when choosing to restructure a country’s economy, it is the best for a government to use private enterprise. It helps a government to reduce social costs and it encourages its citizen to be more initiative. The problems that face many economies today such as rising of national debts can best be met by restructuring economies using private enterprise.


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