Why do people say that free markets are more efficient than government production...

Why do people say that free markets are more efficient than government production? If you have the government producing a good or service, you achieve economies of scale because you are producing the good in only one location. In a free market with many firms, you have many smaller redundant processes producing the same good so you don't get economies of scale. Not to mention that government doesn't set prices to maximize the "producer surplus", so the welfare gains is distributed entirely to the consumer.

So employees actually work without any motivation is what gou're saying..

I said no such thing.

Yes, the Soviet Union was very efficient at producing goods and services.

Great idea op I'm glad we can all wear the same type of shoe in all the same size.

You implied it.

The free market is doing such a good job in Somalia.

Not really.

>government production

Soviet Union fell because of rampant corruption not ideology of economy.

>If you have the government producing a good or service, you achieve economies of scale because you are producing the good in only one location.

Sounds logical, care to provide some real world examples?

"OMG, what would we do without 30 varieties of diet coke?!11!!"

It's a concept taught in mainstream economics.

government is shit at production because they have different goals than a company would have.

This is a very basic concept that you will see again and again as you grow. Anything that the government puts their hands on will become grossly inefficient, corrupted and ultimately cost taxpayers money.

>creating monogorods
>a good thing
>????
>government dissolved, capitalism wins again

yeah the government can just plant glass to feed everyone.

>choice is bad
I hate having options. Why can't the government just make soylent for us all to drink? It's more efficient than steak

Economies of scale only work by means of competitive advantage amongst smaller firms. When you have government controlled production it isn't the market that is determining the individual components of the production but nepotism and corruption.

Walmart doesn't produce most of its own goods, the reason it's such an incredible economy of scale is because smaller firms are competing for the prize shelf location and willingly drop price and raise quality to get there.

Lol. Every government is corrupt. Centralized ones more than others.

You need a market price to determine people's subjective value of a good or service. Only free exchange can give you this price. Without knowing the price of a good, you do not know its demand, and you can not allocate it efficiently.

>mass produce something
>cheap initially
>must overproduce to keep that town's population employed by the one company running it
>product must be stored
>oh shit that's going to take up space and money in vast warehouses
>wasn't this a problem in the soviet union? Weren't they lagging behind Japan because of these types of inefficiencies?
>yes, but if we pinky promise it scholarly and call it "economy of scale" people might get fuzzy on the history lessons
>never mind that mass production of quickly outmoded and dated equipment
>never mind the curve of buyers before a product refuses to sale

Russians gave you pretty medals.

Why the fuck would you think the government could even be remotely close to being as efficient as an industrialist? Are you fucking retarded?

Yeah, a group of people whom are great at getting votes, know how to run a business?

Fucking saged.

Why the hell would you sage this? It's a good learning lesson.