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So, a lot of time, the only reason the private sector does it better is that we've hamstrung the government to the point where they can't develop the skills in-house. If I can't pay my civil engineers competitive wages (because NIH you see), how am I supposed to retain talent? Moreover, how am I supposed to stack up against hotshot private engineering firms?

In opposition to your town hall example: The first (first!) thing I'd expect the free market to do would be to charge a premium to the government to lease to them. After all, where else are they going to go? It's a small enough market that you can cartel the ever-living shit out of it--assuming they can even pay amounts enough to push out other tenants, say a law firm or something.

In fact, it makes even more sense for the government to get a "deal" with the landlord, and maybe help contracts for their other tenants go through faster. Priority lane for occupancy permits and whatnot, sure. This is not a good idea.

If you want to have non-corrupt government, you need to make sure it can function decently without being overly influenced by the greed and selfishness characteristic of modern capitalism.



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