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Right. What it really boils down to is a private entity more efficient at delivering a service than the 10% or so profit margin it requires to operate. The more profit margin a company requires, the more efficient over a government implementation it needs to be; so if a company requires a 20% margin, it needs to be 20% more efficient to break even with a government run entity of the same nature.

There are other aspects such as a company can't run without a profit and proper cash flow for nearly as long as a government entity can, because the government entity is subsidized. Also a government entity is much more susceptible to political winds (budget cuts) than a private entity may be.

There's also the aspect that a government-run program can be subsidized so that those who can't afford it can still use it.

Private entities are far less likely to provide that on their own. And when government starts subsidizing business or giving tax cuts for behavior, then things get wonky, too. Like when the company pockets the money, and doesn't provide the service. Like what happened with broadband:


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