What is the private sector?

Discussion in 'Politics' started by Navy1960, Nov 2, 2011.

  1. Navy1960
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    Navy1960 Senior Member

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    If the Federal Govt. provides funding for programs that private companies in turn have to employ others to meet the need, are these not "private sector jobs"? The question I have here is, take NASA for example, there is a big competetion between Space X and Boeing going on at the moment for who will build the next manned space vehicle. So far this has resulted in over 1500 private sector jobs with estimates at or around 4 to 5000 for years to come. Or, for example a program like the Air Force Tanker program which will build the next generation Air Force Tanker and is according to the RFP to employ around 10 to 15000 people, all in the private sector. As none of these individuals work for the Govt. nor is the man who pours concrete for that highway, or makes steel for that high speed rail, is this not a " private sector job". Help me to understand the difference, surely those who advocate for "private sector" are not saying that these jobs at Boeing, Space X, and thousands of other companies are not "private sector".
     
  2. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    It's very simple. Private sector means it's privately owned.
     
  3. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    Boeing Employee - Private Sector
    NASA Employee - Public Sector
     
  4. Navy1960
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    Navy1960 Senior Member

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    privately owned as in the business that makes the product? If that is the case I would point out that Boeing for example makes more than a few different aircraft for commercial carriers. The Air Force Tanker just so happens to be based on one of those aircraft, so then would it no be a true statement that the Federal Govt. is promoting the " private sector" if they seek to purchase goods and services that are produced by it ?
     
  5. Care4all
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    Care4all Warrior Princess Supporting Member

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    so, billions funded by the tax payer, for those private sector jobs is not jobs created by our gvt?
     
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  6. Navy1960
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    Navy1960 Senior Member

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    Ahh, but the new programs at NASA are almost all run by Space X and Boeing, in fact if you look at it, NASA is even requiring Boeing and Space X to fly their own spacecraft to demonstrate them. So then by that measure, is this not a good example of promoting the "private sector" ?
     
  7. Foxfyre
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    Foxfyre Eternal optimist Gold Supporting Member Supporting Member

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    Any company that is that is totally dependent on government for its income is not really private sector. For instance there are privately owned companies that do maintenance at Kirtland AFB here in Albuquerque and that is ALL they do. They were created to work exclusively for the government. Such companies in my opinion are not private sector because if their government contract is cancelled, they are essentially out of business.

    The advantage of using such companies, however, is that these are not civil service jobs and the tax payer is not on the hook to provide retirement and health benefits to the employees once the contract ends though the taxpayer can still be on the hook for unemployment insurance until the laid off workers find other employment.

    Contrast that with numerous other companies in New Mexico who bid on and receive government contracts at the labs, bases, and other federal installations, but that is only a portion of their work. Losing their government contract is painful, yes, but they have other work to do and would remain in business anyway. Such companies I consider private sector.
     
  8. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    I think you're way over-complicating this. A private sector job may be funded by sales to the governent, that doesn't make it a public sector job.

    I suggest you Google Military Industrial Complex while you're at it.
     
  9. Navy1960
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    Navy1960 Senior Member

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    I think you misunderstand me, I am not saying its a public sector job, in fact in my humble opinion its a private sector job no different than any other, the only difference is the source of the contract. That in and of itself does not change the fact that these jobs are all in the " private sector". Take Space X for example, before NASA had decided to end the Shuttle program Space X hardly existed as a company. The need for "private sector " launch services was only provided by one source and that was Boeing and Lockheed known as ULA. In that time Space X has developed 3 rockets and several services and launch systems that serive not only NASA but also offer private launch services as does Boeing. The point of this thread is simply to point out that , even though the Federal Govt. may create the need, that does not make the supplier any less of a " private sector" employer than the 7-11.
     
  10. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    They are private sector jobs that are funded by the taxpayer. Same as a government employee
     

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