Class Warfare Blog

June 20, 2016

Running Government Like a Business and Delegation

It is a common trope in politics that we should “run our government like we run our businesses.” Since the GOP is putting up a businessman to run for president, maybe we should look at this idea.

Basically the idea has little, if any, merit. What do those claiming this chestnut is good advice mean? That we should make our government run at a profit? That we should sell shares? (This seems to have already been done, with politician’s votes substituting for stock certificates.) The U.S. government has run a loss on its accounts for the past century with only a few exceptions. No corporation could do that (although seemed to be trying). No corporation has the ability to print money, either.

A major aspect of business management is the art of delegation: one gives a task to another and steps back to allow them to do it. It is Republicans most often declining to use this technique. Oh, it should be emphasized that after good delegators delegate a task, they don’t go off to the side and close their eyes and plug their ears. They check on the project’s progress. In fact, you must check on a delegated task from time to time to see if it is going okay. Failing to do this often leads to disappointment. This is standard business practice.

Take, for example, the longest running school voucher program in the country. Republicans have touted “school choice” as an exemplary way to cure our failing schools, offering no evidence of either the failure or the reasons why vouchers should work (arguments, yes; evidence, no). This longest running experiment in school vouchers is in Milwaukee, WI.

According to a recent post on Diane Ravich’s Blog “Michael R. Ford, a professor of public administration at the University of Wisconsin-Oshkosh, reports that 41% of private schools that received vouchers have closed their doors since the inception of the voucher program (my emphasis SR). Milwaukee has the nation’s oldest voucher program, and anyone looking for the miracle of school choice should look elsewhere. On the National Assessment of Educational Progress, Milwaukee continues to be one of the nation’s lowest performing urban districts. Milwaukee has had charters and vouchers for 25 years—two generations of students. If charters and vouchers were the answer to the problems of students and schools in urban districts, Milwaukee should be a shining star of student success. It is not.”

Ford writes: “Forty-one percent of all private schools that participated in the Milwaukee Parental Choice Program (MPCP) between 1991 and 2015 failed. I do not mean failed as in they did not deliver academically, I mean failed as in they no longer exist. These 102 schools either closed after having their voucher revenue cut off by the Department of Public Instruction, or simply shut their doors. The failure rate for entrepreneurial start-up schools is even worse: 67.8 percent.”

So, have any of the legislative delegators in Wisconsin followed up to see if their Grand Experiment in School Choice has worked? Apparently not. Should not evaluation plans be included in all such authorization plans? If we were to run our government as a business, we would, now wouldn’t we? Running schools as if they were businesses mean they can fail and fail they do. And what happens to the kids in these failed schools? (Figure it out, it is not hard. After the money to educate those kids was spent by the failed charters and private schools, those kids were poured back into the public system without the funds to educate them.)

The GOP doesn’t want to run the country as a business. This is yet another smoke screen to distract our attention away from what they are actually doing: running the government as a Ponzi Scheme.


  1. When private industry has an unprofitable part of their business, they sell it or cut it altogether. I don’t think the masses of people who vote for politicians with this mindset have the slightest clue of the implications of running government like that.


    Comment by Tim...Stepping Out — June 20, 2016 @ 2:23 pm | Reply

    • Have you ever heard of a public school that quit? Neither have I. Some have been not so good but that is simply a case for improvement or replacement. These “profit driven” schools disappear, leaving kids and their families and the public schools in the lurch.


      Comment by Steve Ruis — June 20, 2016 @ 3:11 pm | Reply

  2. I don’t think delegation is a unique to private business as opposed to the public government – the government delegates all the time, just as all those military contractors. No, the only reason why we must run the government as a business is for someone to make money.
    P.s. but an interesting lesson on the charter schools.


    Comment by List of X — June 20, 2016 @ 5:31 pm | Reply

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