Similar things happen whether the service is postal, or helping in a humanitarian crisis. In India, which carried 16 billion pieces of mail in 1999, ended up only doing half of that load by the time 2005 came around, after FedEx and UPS had begun to do business there. However, there are times when the government is forced to compete with private for-profit companies, and the results are pretty clearly in favor of said companies.įor example, government postal services often have to compete with FedEx Corp. Because governments often have no competitors in the activities it carries out, we can also view them as monopolies. Today, the biggest competitors of for-profit businesses are actually government enterprises. Such alternatives include things from government associations to colleges and universities to self-sufficient family farms and other similar non-profit organizations. Otherwise, here are my thoughts and summary on the last chapter of Part 2 of the book! Chapter Summaryĭespite how ubiquitous profit-seeking businesses have become in the modern world today, the understanding of how they work and why they work better than non-market alternatives is still not very prevalent. If you want to read my previous summaries, please go here. This is now the ninth chapter summary of Thomas Sowell’s book, Basic Economics.
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