The Problem with Blaming ‘Private Sector’ Companies for the Problems with the Obamacare Website

HCgov cc

Technically CGI Federal (the developer of is a private business. But if all of the business it does is with the government, if its business model is to contract with the state, one can’t really call the company a “private” company. It’s a public/private partnership.

Such partnerships are inherently crony. Not every partnership is corrupt, but many are and they don’t adhere to the rules of the free market. With the government as the customer the rules are very different. There is much more room to fudge. Really that’s the point of this kind of business. Fudge where one can and fatten the bottom line while taking care of the politicians who sponsor your company.

There’s the public sector, the private sector, and the crony sector.

(From )

Any business that relies on government contracts by definition is not operating in a free market and so it is misleading to characterize any such business as belonging to the “private” sector. The defense industry, for example.

Neither are they strictly “public”, true, since the government doesn’t own these businesses. It is not a socialist system. Instead, what we see is a merger of state and corporate power. This is what Mussolini called “corporatism”. Otherwise known as “fascism”.

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