Let’s put it this way: the government does not have a profit motive so it does not have to worry about paying C.E.O.s like “Dollar Bill” McGuire $1.2 Billion dollars in compensation for leaving United Health.
And any for profit business that runs at 3% profit margin is known as a bankrupt business. Anyone who’s taken an accounting or economic course knows that the minimum profit margin that you need to operate on is 15% to stay in business. Why 15%? Cause you need to pay your employees, rent, equipment, supplies, raw materials (if any), etc. and so on.
These guys are running at 30-50% overhead because the people at the top need those billions to retire with. Government would need at least 10% overhead to do the same job and at a more efficient rate. Do that and you won’t have an industry accounting for 10% of our GDP.
Let’s put it this way: the government does not have a profit motive so it does not have to worry about paying C.E.O.s like “Dollar Bill” McGuire $1.2 Billion dollars in compensation for leaving United Health.
And any for profit business that runs at 3% profit margin is known as a bankrupt business. Anyone who’s taken an accounting or economic course knows that the minimum profit margin that you need to operate on is 15% to stay in business. Why 15%? Cause you need to pay your employees, rent, equipment, supplies, raw materials (if any), etc. and so on.
These guys are running at 30-50% overhead because the people at the top need those billions to retire with. Government would need at least 10% overhead to do the same job and at a more efficient rate. Do that and you won’t have an industry accounting for 10% of our GDP.