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| [Reprinted from The
Gargoyle, October, 1970] |
We've all heard the phrase "Creeping Socialism". That's the
condition so evident in the United States the past generation as more
and more socialistic programs have been adopted. But socialism is so
inefficient and causes so many problems that a new phenomenon is slowly
appearing in the United States. Forbes Magazine calls it "Creeping
Capitalism".
It is the increasing adoption by people of private enterprise to
perform functions which the government has been doing. People have
turned to the free enterprise system not because they want to spend more
money, but because the service rendered by government at all levels is
so poor.
The most prominent example of what might be termed a species of
creeping capitalism is the recent adoption by Congress of a bill turning
the 131 year old Post Office Department over to an independent
government agency. The post office is now to be run on principles
somewhat similar to those of private businesses.
True creeping capitalism would have been to turn over the post office
to private business to run with the government having nothing whatever
to do with it.
This is what Forbes is talking about. The tendency to let private
business do the job is in some instances being forced on the people. In
San Diego, for example, in some areas of that city, garbage pickups had
been on a basis of two, three or five times a week. But the city cannot
afford such luxury anymore. One pickup a week is all that is now
scheduled. The Mayor bluntly stated that anyone who wanted more pickups
would have to get private contractors to do the job. Which is what
people are doing.
Fire protection is expected increasingly to be performed by private
business. The outstanding example of a private fire department is the
Rural Metropolitan Fire Department which covers a 400 mile area in
Arizona, and is expanding its service. It serves a city as large as
Scottsdale with 66,000 population and much more efficiently and cheaper
than any municipal fire department.
Protection, which most people believe is the principal reason for
government, is increasingly becoming a function of private business. The
local and other governmental bodies simply cannot do the job properly.
People in high crime areas band together to hire private policemen to
patrol their areas. Businesses have long had private police forces if
the business was big enough. But now even smaller business firms find
the public police force cannot do the job so they band together to hire
private concerns to protect them.
People may slowly begin to realize that actually there is no service
which the government renders which cannot be done better by private
enterprise, except the collection of economic rent. The expensive road
system of the U.S. would have been built at a lot less cost if the
principle of the old turnpikes of the 15th century had been followed. In
the early part of that century over five million miles of private toll
roads were constructed. There is no reason why private roads could not
be constructed today. Look at the saving to the public if such were
done. Maybe they will yet as costs get too great.
Of course, more and more people are sending their children to private
schools. Our socialized (public) schools are going from bad to worse.
So, people are more and more subjecting themselves to the double cost of
education involved (paying for the public schools which they don't use
and paying for the private schools which they do use).
The concept of creeping capitalism is a good one and one can hope it
will change from a creep to a gallop. However, one flaw in it all is
that the tendency to use private services is not based on the conviction
that the services should be performed by private enterprise. Rather it
is that the public service is so bad that people feel forced to look to
private concerns. If the philosophy took hold that these services which
many consider the province of government, as education, actually are
functions of private enterprise, then we would really see the
development of truly remarkable services at low cost. And we would be on
the way to the ideal form of government, which is that the best governed
are the least governed.
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