Compact Mag has a good idea. Because it’s a good idea, it can’t happen.
Defense contractors deal only with the government. All of their income and business comes FROM the taxpayers, but their profit goes TO the executives and Larry Fink. This is the worst of both worlds. They take from the taxpayer and give to Larry Fink. The author lists several proposals to nationalize the war industry, starting after WW1. FDR suggested it but didn’t try hard enough to make it happen.
The Post Office is the best of both worlds, close to the Soviet model. The PO is a profit-making business, owned and capitalized by the government. Very little of its revenue comes from government. Profits are turned inward to improve facilities and pay workers more. Profits do NOT go to Larry Fink. The two federal power utilities, TVA and Bonneville, operate the same way. Most of their revenue comes from business and citizens. They reinvest profits in improved operations, not enriching Larry Fink.
The case for SOE is even stronger with war contractors, who derive nearly all of their revenue FROM the government. If they were SOE, the annual defense budget could be smaller, and the money would go to manufacturing and workers, not Larry Fink.
Of course we won’t do it. We might even make things worse. The last time we had a chance to nationalize an industry we gave EVEN MORE wealth to Larry Fink. In 2010 Obama had public support for turning health care into a Soviet-style SOE, but instead he solidified the monopoly power of insurers and corporations.
Polistra's Mill 