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<blockquote data-quote="Asmodeus" data-source="post: 29597967" data-attributes="member: 583013"><p>First, the primary goal of businesses is to make profits. But that contradicts the goals of the government, which uses assets to serve people. And sometimes the government can enter into some businesses that do not have any competitors. But with time and competition, businesses can incur losses, and then the primary business model needs modifications, which also contradicts the government's goals. With the supply of vast, nearly unlimited assets of any government (which is why the government always invests in improving infrastructure), any business can start successfully, but these tend to fail because of changes in user demands, introduction of new trends, and the introduction of competitors. Hence, businesses tend to fail and start burning cash. And lastly, with huge backup from the government and no need to make profits, such businesses have an advantage over private businesses, which is not good for development.</p><p></p><p>This question needs a very comprehensive answer, which takes some time. The above answer may not be clear, but I tried to summarize some of the basic points.</p></blockquote><p></p>
[QUOTE="Asmodeus, post: 29597967, member: 583013"] First, the primary goal of businesses is to make profits. But that contradicts the goals of the government, which uses assets to serve people. And sometimes the government can enter into some businesses that do not have any competitors. But with time and competition, businesses can incur losses, and then the primary business model needs modifications, which also contradicts the government's goals. With the supply of vast, nearly unlimited assets of any government (which is why the government always invests in improving infrastructure), any business can start successfully, but these tend to fail because of changes in user demands, introduction of new trends, and the introduction of competitors. Hence, businesses tend to fail and start burning cash. And lastly, with huge backup from the government and no need to make profits, such businesses have an advantage over private businesses, which is not good for development. This question needs a very comprehensive answer, which takes some time. The above answer may not be clear, but I tried to summarize some of the basic points. [/QUOTE]
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