A business and a government cannot be measured by the same single test. Profit provides a comparatively clear measure for a firm, while a government must distribute limited resources among health care, education, security, and other public purposes. Maximising one service can leave the others unable to function, so efficiency depends on a contested balance rather than one financial output. The broader argument presents government as a way for collective choices to restrain some of the harms produced by individual incentives or an unqualified market. Public administration is therefore an allocation problem rather than a profit-making exercise.
Notable Point · 2:27:21-2:28:32
Why government cannot be judged like a business
A political-economy aside contrasts a firm's profit test with a government's obligation to balance health, education, security, and other collective needs.