In a civilized modern state, private business harmoniously complements public administration and trade spheres. Services and goods are distributed in many areas intelligently between private individuals and the state. These individuals are bound by the laws of their country and take full responsibility for providing quality services and goods. The regulation of different types of business is influenced by supply and demand and pricing mechanisms.
These mechanisms are based on the theoretical foundations of the public and private good. This problem was born from the theorizing of philosophers and economists, affecting aspects of ethics and economics and the justice of the state apparatus (Shi et al., 2020). The main difference between a private and public good is that the use of a public good by one person does not diminish another person’s right to the same service. A public good is not a special privilege based on wealth or descent. Behind the public good and its consumption is always state prosperity and benefit. For example, schools are a public good, not a private good, because education and accessibility are a strategic basis for improving the standard of living in the state.
In contrast to the public good, there is a private good; it mainly complements the people who want and can afford particular services and goods. The state can and should produce goods and services that, theoretically, could become completely private so that people have a base of quality of life and the possibility of a comfortable existence (Tanzi, 2018). For example, mailing can become an entirely personal business; still, business people will take away the ability to use the mail from many people who cannot afford to pay more taxes. These people do not need urgent or oversized delivery but use the mail service.
There are people with specific habits and needs; for example, such habits are food: cuisine, cooking methods, and special foods. Particular needs include medical care, which can be used by people with rare diseases or even some chronic diseases (Tan et al., 2019). Private medicine is often resorted to by people in need of psychotherapy. People can also find themselves in situations that require a quick solution, and then, for example, they use express mail delivery. Private business in this area provides various services where people can choose and express trust or distrust in brands and companies.
Private business has excelled in the provision of medical services in recent years. People in private clinics willingly entrust personal information to doctors without fear of stigmatizing or losing their jobs (Tan et al., 2019). In addition, the COVID-19 pandemic has made it possible for people to choose healthcare services when there should not seem to be a choice due to the urgency of the problems (Cutler et al., 2020). At the same time, the army and public security sphere cannot currently move into private business (Samuels, 2018). No quick and straightforward economic mechanisms calculate who and how much should contribute to their protection. The state provides its residents with security on an equal level and a priori, not because some residents have paid a fee and asked for protection. Competition between private and public businesses must be healthy and productive. People cannot say that a public company is better than a private business or vice versa. There should be economic diversity in modern realities, accessible only if the state and private enterprise have joint and well-coordinated work.
The distribution of the public good plays a vital role in the problem of ethics and social justice. The private business helps people access a variety of services and often some specific ones that are not provided by the state. Thanks to private enterprise, the market is saturated with exceptional services and goods that are not popular with most people but have a stable group of buyers. However, not everywhere can private business advance, so there are areas, such as public safety, in which state business dominates.
References
Cutler, D. M., Nikpay, S., & Huckman, R. S. (2020). The business of medicine in the era of COVID-19. JAMA, 323(20). Web.
Samuels, R. J. (2018). Rich nation, a strong army. Cornell University Press.
Shi, L., Romić, I., Ma, Y., Wang, Z., Podobnik, B., Stanley, H. E., Holme, P., & Jusup, M. (2020). Freedom of choice adds value to public goods. Proceedings of the National Academy of Sciences, 117(30), 17516–17521. Web.
Tan, S., Seiger, K., Renehan, P., & Mostaghimi, A. (2019). Trends in private equity acquisition of dermatology practices in the United States. JAMA dermatology, 155(9), 1013-1021.
Tanzi, V. (2018). Corruption, complexity and tax evasion. Economic Policy, 13(6), 36–53. Web.