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, so 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.

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100 thoughts on “Private Sector vs. Public Sector”

  1. This video is misleading, to say that the public sector is more expensive. When utilities, trains, and post office was nationalised, things were cheaper. Now they're privatised they're more expensive and price increases happened. Competition did not lead to lower prices.

  2. I would, if i were a president, make a public airport and airplane sector, and BAN private sectors pf said things. I do this to make flights faster and cheap.

  3. This whole video is a lie. When power was municipal, it was cheaper. When wars were municipal they were cheaper. When prison were municipal, they were cheaper. And let's be honest…who is getting good service from anyone anymore?

  4. This video is biased. This video assumes that the private sector is perfectly competitive. The private sector is mainly run by oligopolistic firms that end up charging higher prices and offering bad service anyway.

  5. I'm at a slight mix if police/firefighters should be left to the private sector. On one hand, notice the wages police officers make. Very little. This is all thanks to tax system. Heck, police officers risk their lives more than many citizens do, and yet they don't make hardly as much compared to other occupations and careers. On the other hand, having privatized police means that we'd have to pay a price for the crimes that someone else commits. I mean yes it is very ethical, reasonable, and logical that police officers should get paid by the victims because they are doing them a service; but, something about it just does not seem right. So either we fix the tax system in the U.S. to allocate and direct more taxes towards police officers, or we take the risk of having to pay money for a family member being shot. America, you choose.

  6. The private sector in America is worthless. The next depression will point that out. Just like the last time.

  7. Taxes don't fund government spending. 
    How can you pay your taxes for your services if the government hasn't issued you with the money to pay your taxes yet? Taxes reduce aggregate demand to allow the government to spend without inflation.

  8. Even police should be Private and firefighters Courts Military so No Goverment Only capitalism Allowed and poor will better as 0% taxes no Regulations x9 more competitive x5 and more

  9. Lol what a contradiction: the example they started with is the post office which competes directly in the free market and doesn't use any taxpayer funding for it's services, and offers those services cheaper than it's private sector counterparts. It also has incurred no debt as stated and operates profitably to the tune of hundreds of millions per annum. The "debt" they have is due to the unprecedented prefunding of health benefits 70 years into the future, which is a whole other issue. But suffice it to say they have not racked up Dept themselves and the taxpayers haven't had to do anything to bail out the post office. Very misleading example to choose.

  10. I'm a conservative and all but I don't agree with this notion that the private sector is always more efficient than the public sector. That's the problem with a lot of people on the right, they just see government as this big bad entity that can never do anything right & just wastes tax payers money but if they actually understood the hard work & accomplishments public sector employees do on a daily basis, they probably wouldn't complain they aren't getting proper value for their tax dollars. Granted, there is a lot of waste & incompetent people within government but there's also a lot of waste & incompetent people in the private sector as well. I know what you're probably thinking, you're probably thinking to yourself "since the private sector is seeking to profit, there shouldn't be any waste or inefficiently in the private sector." If that were true, please explain to me why I always see wasted product at my place of work all the time, and why is that there's always at least one person, at every job, that is absolutely useless. You know, the one person who's completely lazy and/or incompetent and everyone else had to pick up their slack because they can never seem to get fired.

  11. This is a fairly ignorant video. It talks about how the private sector has to compete for customer's dollars, whereas the public sector doesn't. There is a little thing called "votes" that the public sector has to compete for. Representatives decides via committees how tax dollars and revenues are budgeted to provide public services. There is oversight and auditing galore in the public sector.

  12. How about if your nation is facing an aging population with more people retired paying minimal taxes and demanding more services? I doubt Western nations will be able to afford there government services as the bulk of the population nears 65. Privatization is more likely to replace the public sector.

  13. This message is an oversimplification of the issue. Privatization will not get rid of government departments overseeing the use of these services and spending your tax $ to do so. Some services should be privatised, however, others should not since it adds another tier of potential corruption. Since many so called private services already receive government $ in the form of subsidies, bailouts, advertising, etc.., not to mention kickbacks, the "customer" ends up paying twice. Where there is extra money to be made there WILL be corruption. Fewer tiers = less complexity = better transparency. Private is just another word for secret.

  14. small business owners costs go up , because public sector wages going up . Why private sector wages have shrunk since 1970

  15. Private sector is now too big to fail so they are just as shiftless, lethargic and apathetic as the fat rat government

  16. Hi wow time is flying by! HI my name is Rhonda Pickett I just relocated to Jackson Mississippi from Lansing Michigan I usually get bi-polar around this time of the month wondering if I'm going to get my check on time, when it's coming or if I did something wrong! It get really bad something by me moving I really need my check because I have to pay rent and I and get some personal need I would like to hire you to please make sure I get my check on time I get really scared and worried around this time!
    Love you Thank you so much
    Rhonda Lynn Pickett

  17. the private sector prices go down my ass. businesses are constantly increasing their prices each year. I have never seen a private business drop their prices.

  18. After knowing how Fedex treats it's drivers under its business model no way I would trust Fedex with a package. Also always end up mailing things through USPS. Private Sector is not always better.

  19. I am employed with Public Sector, I have to be, Accountible with what i do why? I represent the tax payers. Even while not on the clock, the accountability reaches into… my private life. To which a have Absolutely No Probblem's with, it keeps me grounded and disciplined with the enter actions of Others…, around me. Somthing that I didn't have to worried about, in the private sector Which was Discipline. -This has been my own experience working in Goverment. Or Goverment Contracted employment. 🔘🔗☑

  20. "You probably wouldn't want firefighters and police officers competing for your business"

    Uhh why? Do you think police brutality is a problem? If they had to compete for our business, that would deincentivize acts that are perceived to be unjust, like beating a person to death for doing nothing wrong.

  21. We could privatize the fire department. We could even contract out the police force to a private security firm with tax dollars

  22. This video misses several key aspects of how a market economy works.

    The benefits of the free competition only works if
    A. There are many different choices available,
    B. The consumers are well informed, know what is best and are capable of making the right decision, and
    C. You want to maximize consumption

    The private sector tend to bring forward monopolies or oligopolies, wich makes the same situation as the public sector.
    In many areas there aren't different choices, for example in the countryside
    In many areas it is very hard for consumers to make a right decision, for ex healthcare, schooling, banking and so on
    In many areas you don't want people to consume, for ex tobacco, alcohol or things that are bad for the environment, in these fields you want people to consume less, not more.

    Some ares are suitable for the private sector to manage, some areas are not.

    BTW: If the public postal service works bad, then the elected representatives that govern should be replaces by the next election.

  23. banks are being bailed out almost every day. this video is propaganda or grossly false in the so called Too Big to Fail faux capitalism age.

  24. It's simple: The people in charge of the public sector are handling tax payer money, and the people in the private sector are handling they're own; who do you think is going to demand more of the workers, and who is going to perform better?

  25. When the government decides to bail out and "throw" a public sector to a private sector. They are actually washing their hands of responsibility. For example: Garbage Service, if the local government decides to privatize the sector, workers will be paid less, working conditions won't be as good, the private administration will be "grabbing" most of the public money and filling their pockets. Most of time it is more expensive for tax payers for the government to pay the private sector to do the "work". They are less competent in serving the people all together. No to the privatization of public services!!

  26. This video is biased. This is a campaign for FED x and UPS trying to take down public services. Private companies can be dangerous if they dominate on a whole certain services. I would not like it if FED X were to run the whole public mail services. It's an option for people and businesses, and that's great in that way.

  27. Monopolies and Oligopolies are exceptions to the rule of private-sector goodness. Think of cable companies. And some high-tech companies (wink, wink).

  28. To you crazy right-wingers all government is bloated. But let's hand over our government to conglomerates. Stupid asses! It's funny how you have tricked the population into believing the "elites" are over there when you SOBs are the ones (corporatists) that are the elites! SMH Government is supposed to be slow and deliberate. You claim that private enterprise is efficient and effective but the opposite is true. When you privatize, costs to the government go up and accountability goes out the window. This is what is happening is the U.S. Remember the cronyism of the Bush W. years. And now we have the most corrupt presidential administration that this country has seen in decades. Government of the people, by the people and for the people is anathema to you predatory capitalists. FU!

  29. Adam Carolla – SHUT THE HELL UP!!! I wouldn't work for ANY jackass – especially you – if my salary were doubled!!

  30. this is so bogus the debt of the post office was a congressional scam to under cut them… which was forcing them to stockpile funds to be used for retirees 75 years from now… so that mean postal people who have not even been born yet. I am a veteran and I get my medical service from the VA which has also has been undercut by private sector criminals like the koch brothers who are itching to get their hands on my dollars. Oh you say the news papers always print how bad service is as the VA well that is because as a public sector entity it is subject to transparency meaning every little thing is brought out into the public but just google how safe are hospitals and you will find study after study which relate how deadly private sector hospitals are why I dread the day my VA goes private… and it will because of videos like this which scam you into hating government. somethings should be private… car dealers, best buy, beer joints and hall mark, but hospitals, schools, mail, water, internet, and any number of things that we all need and depend on ,,, just give me of the people, by the people and for the people,,, give me public. Remember government is us private sector is for PROFIT and someone is making a profit off of YOU. let the buyer beware

  31. Usps has issues but look at it like this if you use mail once in a while I say usps it's not about customer service it's about price for me

  32. Rhonda Picmegg: sovervinv my head Rhonda Pickett
    C limbed I my head yesterday tued it up and cut.e up inside of out

    Rhonda Pickett: Jackson, MS

  33. won't go raping me cutting o. me butchering on me locked insise head I. damage let them do this all day everyday they are do close getting real.out of control

  34. I am disgusted by what the big tech companies are doing in regards to censorship. But they are private companies. If the Government gets involved I cant help but think that it could open the door to individual websites and Youtube channels being forced by law to allow anyone to comment on their content using the owners own cyber real estate to do it.Using other peoples creation as a podium to preach ideas opposed to their own philosophy
    could lead to Churches having to allow opposing viewpoints within their own private spaces. If we start turning private companies into public utilities it could become a slipperey slope to full blown Nationlization of Corporations.

  35. Like Fire department, police and the military: health insurance and hospitals are also businesses that doesn't work well in private hands. Your cancer is not meant to turn a profit.

  36. So police and fire departments shouldn't be privatized, but privatization is always better? Ok, got it. /s

    Is Fox News bankrolling this propaganda outlet?

  37. Privatizing the DMV is a horrible idea. The DMV isn't supposed to make money, it's supposed to process stuff like license requests. If you put a private company in charge of the DMV they're going to make sweeping changes in order to increase returns. We've seen this with private prisons, which also shouldn't be in the hands of private companies. They effect change in our laws to increase prison sentences and make laws more punishing purely for the purposes of driving up the prison population. We need to stop thinking of private business as the solution for everything because they're number 1 priority will be to always make money and we need to analyze what services we want profit driven or not.

  38. But what about when the government contracts private sectors And gives you no other option to seek viable services causing a mix between the two? COUGH COUGH* social services

  39. I rented a monthly mail box from USPS. Their customer service was very shitty and they were closed on all non major holidays. I needed to stand in line to get help. Automated phone system. Black woman gave me attitude over the phone.

    I rented a UPS box for more money. Excellent customer service. Open seemingly all year round. No wait time to talk to the customer service. Phone calls go straight to the customer service/owner.

  40. I think the best solution on that situtation everything should be private except military,judgment and police…maybe the hospitals

  41. What's the best alternative to the Department of Motor Vehicles? Submit #film #musicvideo #screenplay to Colorado Intl. Activism Film Festival #CIAFF 2019 find us @InfinitePFilms – Infinite Perimeter Films. Thanks! 🙂

  42. Poor example. I am a UPS employee. I know conservatives are very anti union and UPS has one of the strongest unions in the country, hence why UPS drivers make $37 an hour compared to private sector jobs like fedex or amazon which barley clear $20 an hour. But UPS is "private". People complain about how unions and public sector employees are "overpaid" how about the private sector starts paying a union wage with benefits? That would even out the competition and provide a better argument to privatize everything and lower pay which is what companies want. Dont mind me, im just an employee in the private sector.

  43. Things not made by the private sector. Hoover Dam, Panama Canal, space exploration, several inventions are funded by government, government keeps us safe from foreign invasions, the government is there when the private sector fails. The government protects you from private scams or misadvertising. The government does not hire enough PR firms to promote what it does do, probably because the private sector has bought the government. The government can do things the private sector deems too risky or not worth the investment. Like funding education to invent things like atomic energy.

  44. The funny thing is after bragging much about efficiency & competancy PragerU begging for donation from people…!! Why cant you compete with others and earn more money from Youtube?.😂😂😂😂

  45. Public sector employees don’t have to work 80 hours a week along with 7 seven days a week. Also, they get paid vacation, unlike private businesses, under the command of people like Elon Musk or Jeff Bezos, enslave their workers to basically live at the job.

  46. One of the biggest feat Americans and humanity every did, like the moon landing, had mosly public coordination…and the most expensive human structure ever created is public and its the fabric of american, the interstate. Public sector rocks! Of course private sector made it possible but would never be capable of the coordination public sector has. So public sector is essential.

  47. Wait, why wouldn't I want private companies competing for fire & security protection?? Pretty sure the quality, service, & technology would be about 1016% better than it is now in the hands of… I'll just leave it there. Put private companies on a public bid ballot. Watch what happens.

  48. The way that I feel about the package I need delivered is: I don't bet all of my money on a single package I need delivered…

  49. in private people actually look at costs which is why no business will ever go even 1 trillion in debt cause they long dead b4 then

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