Question

4. Another example of the benefits of “greed” can be seen when comparing “for profit” versus “not-for- profit” industries. According to economist Walter Williams, what does he conclude about customer satisfaction when comparing profit versus not-for-profit enterprises? Be sure to cite specific examples from the video that he used to make his point.

Answer 1

Step-by-step explanation:

In the video, Walter Williams states that “when you look at for-profit enterprises and not-for-profit enterprises, for-profit enterprises give us better quality, better service, and lower prices than not-for-profit enterprises do.” He cites a specific example of the U.S. Postal Service, which is a not-for-profit enterprise. He goes on to say that “we’ve all experienced the poor service, the delays, and the lack of efficiency” of the postal service, which he attributes to the fact that the Postal Service is not subject to the same competitive pressures that for-profit enterprises are. He also cites the example of mail-order catalogs, which are for-profit businesses that provide better quality and lower prices than the Postal Service. By contrast, he points out that “if you want a good job done, you don’t hire a non-profit” and “you don’t hire a charity.”

In conclusion, according to Walter Williams, customer satisfaction is higher when dealing with for-profit enterprises rather than not-for-profit enterprises. He cites the examples of the Postal Service and mail-order catalogs to illustrate his point.