How Washington Works: The Executives Guide to Government by A. Lee Fritschler and Bernard H. Ross provides essential information for business executives and business students who need a better understanding of the complexities of government decision making. It should be required reading for anyone who needs to know how Washington works. The government is responsible for ensuring that the nation's finances are properly organized. The government has to try and make sure that it does not spend more money than it actually possesses, in the same way that individuals do. The government controls the finances of the public sector.
The Public sector is the part of the economy that is owned and controlled by the state, namely central government, local government, and government enterprises. In a command economy, the public sector provides most of the resources in the economy. The opposite of the public sector is the private sector, where resources are provided by private individuals and business organizations.
Most goods and services provided by the public sector in any economy are allocated on the basis of need rather than on ability to pay. For example, in the National Health Service, patients are treated because of the seriousness of their medical complaint and not because of how much they can afford to pay in fees. However, some products produced by the public sector are sold; for example, rail services and postal services. Most of this production has been privatized in the Unite States since 1979.
There are three parts to the public sector:
- central government
- local government
- nationalized industry (those industries that are owned by the nation and controlled by government). (Fritschler & Ross, 1990)
The private sector is that part of the economy that is owned and controlled by private individuals and business organizations such as private and public limited companies.........
