Government has a tendency to be inefficient as it has no need to compete in an open marketplace, and jobs in state institutions are safe because of the guarantees both of the tax base and government’s greater borrowing capacity.  Governments both as a whole and in terms of individual employees have a tendency towards astonishing inefficiency, because state institutions are not subject to any meaningful competitive pressures. Indeed, many government employees earn as much or more than those in comparable jobs in the private sector, have preferential pension and benefit plans, lower hours and longer vacations. It is of course unsurprising that anyone in possession of such a job would be reluctant to give it up but also suggests a lower level of competition for keeping it. In the private sector such preferential returns would suggest that a worker would be likely to work longer hours to keep them.  Equally, because senior managers are not spending their own money and rarely have their salaries indexed to efficiency and effectiveness- in a way that is automatic for most companies- there is little pressure to find cost and operational efficiencies. As a result it is usually cheaper and more effective for services to be provided by the private sector wherever possible and appropriate. Although there are some areas which must be managed by the public sector, such as elections and the criminal justice system, it is difficult to see the benefits in other areas.