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Private Sector vs. Public Sector
  Published: 2 years ago


If you were mailing an extremely important package, you'd probably trust FedEx more than the U.S. Postal Service. But why? Is it because FedEx is a private company, while the post office is run by the government? What are the differences between the "private sector" and the government sector? Why does it matter? Find out in this animated two-minute video.
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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. 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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Comments Directly on YouTube

4 days ago
I think this type of argument are dangerous.
Look at America, is it really better than Europe?
Don't seems.

2 weeks ago
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.

3 weeks ago
I would rather prefer private firefighters. They would come faster!

4 weeks ago
Why the fire department or police go to the private sector? The Fire Department used to be private and they’re are more more private security than police.

1 month ago
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.

2 months ago
what would be wrong with private police and firemen

2 months ago
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

2 months ago
Don’t underestimate the public sector, it’s a lot more valuable than you might think.

2 months ago

2 months ago
In Brazil we can not choose, because the post office is a state monopoly

3 months ago
It will be broke when it arrives

3 months ago
Public sector is better as employee.
You can hold a permanent job. More free time. Better pension

Private sector is a good place, when you want to earn a lot of money, but you have to work harder. And private employees can go bankrupt (you can lose you're job) because it's run by private investers.

Public sector never goes bankrupt, because it's owned by the goverment itself. The goverment is the invester.

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

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

3 months ago
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.

4 months ago
Meanwhile my socialist university is teaching us that public sector is far better....

4 months ago
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.

4 months ago
cost to live get higher , because of more publics servents hired

4 months ago
Prices don't go down, the biggest lie here.

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