Private vs. Public Sector: How They Work Together

 

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Hi Guys! We have made it-it is Friday. To my Muslim friends, Jumma Mubarak and to my Non-Muslim friends, TGIF! Today, I want to continue counting my blessings such as my health, wellness, and countless other things that are a source of great happiness for me. I know I don’t thank God enough and I hope he is listening to my prayers and gratitude today.

I am loving the reporting on conservative media this month as apparently something is happening with liberal media as they try to comb through their facts and reality. Yes, I saw a piece on CNN where one of their news anchor had a psychiatrist on air asking her to  make a diagnosis of President Trump’s “condition”. Yikes! That is not only morally wrong, but soo illegal. I am not even going to touch upon the word spinning. All I know is that liberal media is digging a hole too deep to climb out of. Anyways, I go off tangent. The real intent behind these political posts are to teach my readers to really read (aka understand) what is being reported to them and discern how the real issues are effecting people-nationally.

One of the issues that I have touched upon is private and public sector. In a democratic/capitalist society like ours, their interplay and conflict is a huge part in our lives. However, liberal media (you can tell I am not fond of them) would love to paint a picture where the private sector is this greedy part of the economy taking people’s money and being a Scrooge when giving back. So today, I thought I’d shed some more light on this topic.

For the progress and development of any country, both the sectors must go hand-in-hand as only one sector cannot lead the country in the path of success. The private sector comprises of businesses which is owned, managed and controlled by individuals.  These usually includes corporations (both profit and non-profit) and partnerships. For example, retail stores, credit unions, and local businesses operate in the private sector. It is richer, more profitable, and more enterprising, but not without the government’s help. The public sector refers to government-owned organizations and government-provided services. The public sector is usually composed of organizations that are owned and operated by the government. This includes federal, provincial, state, or municipal governments, depending on where you live. Some other examples of public bodies are educational bodies, health care bodies, and police and prison services.

Please read the chart below to get a through understanding of their differences:

Comparison Chart

BASIS FOR COMPARISON PUBLIC SECTOR PRIVATE SECTOR
Meaning The section of a nation’s economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector. The section of a nation’s economy, which owned and controlled by private individuals or companies is known as Private Sector.
Basic objective To serve the citizens of the country. Earning Profit
Raises money from Public Revenue like tax, duty, penalty etc. Issuing shares and debentures or by taking loan
Areas Police, Army, Mining, Health, Manufacturing, Electricity, Education, Transport, Telecommunication, Agriculture, Banking, Insurance, etc. Finance, Information Technology, Mining, Transport, Education, Telecommunication, Manufacturing, Banking, Construction, Pharmaceuticals etc.
Benefits Job security, Retirement benefits, Allowances, Perquisites etc. Good salary package, Competitive environment, Incentives etc.
Promotion Basis Seniority Merit
Job Stability Yes No

*Source: HERE

While the media loves to vilify one or both sectors, please note that the role of the government is to have both private and public sector work in such a manner that is benefitial for the public good. Giving the private sector incentives through tax cuts to hire more people, give employees more benefits, etc. gets balanced with government giving up some of their power by allowing individuals to build businesses/corporations and not be a big scary communist or dictatorship government. So guys, please do not read articles online or in newspapers or look at the images such as the one in the blog’s header and believe that these two sectors have opposite viewpoints. This type of government/economy model works best to improve the standard of living in any country.

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