Role of competition in the economy and in government

In the private economy other competing firms can duplicate or take different points of view about the nature of desirable products. But there are not two departments of defense to provide the competitive survival and selection of preferred products . . . Without competitors . . . a monopoly does not ensure that alternatives will be tested and explored with the efficiency of competing firms.

 

A quiet, uncomplicated life without so much bickering and fighting about wealth values of alternative products is more viable. Centralization under Government contexts implies less exposure and testing of differences of opinion, easier suppression of alternatives, less effective response to costs, and loss flexible adjustments of programs despite more exhortations to the contrary.

That was the ever insightful Armen Alchian quoted in the Commission on Government Procurement, reprinted in “Hearings on Office of Management and Budget Circular A-109: Major System Acquisition Policy,” Before the Research and Development Subcommittee of the Committee on Armed Services, House of Representatives, Ninety-Fifth Congress, First Session (Nov 1 and Dec 1, 7, 1977) and Second Session (Apr 6, 10, 14 and Sep 18, 1978).