In a recession, it is well accepted that the safest income comes from Government programs, backed by taxpayers and the Government’s ability to borrow or print more money. Programs such as welfare or social assistance, health services, public transportation, law enforcement, infrastructure maintenance, are necessary to stimulate a quick economic recovery. The private sector earnings is reduced to the flow of funds out of these programs, hence they too must become Government employees.The private sector bid for contracts comprises a number of formal and informal interviews, ranging from the seeking of permits to the entertaining of influential contacts. Applications or proposals to supply goods and services may require legally, or other highly academically, trained minds. On the other hand, analyzing who has the influence and what it will take to motivate their action requires a different skill set.
To supply goods and services under a Government welfare or social assistance program, the private sector (manufacturers, processors, trade importers, wholesalers and retailers) must informally find out, before it becomes public knowledge, what goods and services are needed and at what price and then must make a formal application or proposal describing in detail the how, where and when goods and services are to be supplied and at the best price.
The Government health services program operates very similar to the welfare or social assistance program, with one additional impediment. The private sector (manufacturers, processors, trade importers, hospitals and pharmacies) must informally find out what is needed and at what price, then must be certified or pre-approved as a medical supplier by another Government agency or state board and only then can they formally apply to supply at the best price.
For the private sector to legally become involved in public transportation (air, sea or land), they require permits from an official Government agency to own and/or operated various types of vehicles and must be assigned times, routes and stations or dock access, by other Government controlled (airport, seaport or land station) authority. Additionally, the private sector, whether transporting people or cargo, must purchase special insurance to apply to operate under Government license and pay fees to use Government’s facilities.
Law enforcement supplies are a range of specialized gear and equipment which carries an elevated component of risk and requires a high level of safety and security. Governments deal directly with private sector manufacturers from any location in the world to lessen the risk that intermediaries may present. Still, the training, transportation, installation and maintenance of many such items provide numerous opportunities for private sector involvement. Government therefore, has to award or grant security clearances and permits to each and all contracted.
Government thinks of infrastructure in two ways; the maintenance of existing plant and equipment and the development of new facilities. The development program is normally decreased in recessionary times and maintenance activity is usually stepped up. The private sector that was involved in new construction must switch quickly to provide maintenance related goods and services.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
