Why is the "private sector" better than the "public sector"?

[girl gone mad]

84. This is an incomplete view of the role of the government in a modern economy.

Marx was right about some things, but wrong about others.

Most importantly Marx lived, worked and wrote at all times under the assumption that commodity money exists and that it takes the form of gold, freely produced in the capitalist market, for which currencies are exchangeable at a fixed value at the central bank. Marx was a fan of this gold standard and first and foremost Marx's theory of money is a commodity theory of money

Needless to say, Marx's theory of money does not describe the world markets as they function today, nor does it describe any specific national economy.

In the U.S., we live under a sovereign fiat currency regime with a flexible rate of exchange. Our sovereign currency-issuing central government does not pay for services out of tax revenues it receives. Tax revenues serve to drain money out of the private economy and counteract inflation, providing stable demand for our fiat currency.

When our currency issuing government spends money into the economy, it can create "value" in precisely the same manner that the private sector does when the private sector creates loans, minus the interest-bearing debt feature which shifts money away from productive activity and encourages rent-seeking activity. Our monetarily sovereign government can spend at will, and under good management can and should invest in education, research, energy security, food security and infrastructure. Whereas the private sector of late prefers to lend to fuel bubbles designed around tract housing and smart phone apps.