Billionaire and Tesla TSLA CEO Elon Musk argued in March that if a commercial company operated like the U.S. federal government, it “would go immediately bankrupt.” But economist and former U.S. Labor Secretary Robert Reich says that’s exactly the point—the government isn’t a business and shouldn’t be run like one.
- Massive Demand & Disruptive Potential – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.
- Revolutionary Manufacturing Approach – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.
- Affordable Investment Opportunity – With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.
Government Is About People, Not Profits
Don't Miss:
- Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
- Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share.
“Let me make it clear. Government should not be run like a business,” Reich said in a recent YouTube video. While he agrees that no one wants their tax dollars wasted and supports cutting government waste, he warned that it must be done carefully — “with a scalpel, not a chainsaw.”
Reich explained that businesses are focused on profit. “Corporations like McDonald’s and Walmart, they don’t exist for the public good. They exist to maximize their shareholder returns,” he said. That often means low wages and minimal benefits for workers, many of whom rely on taxpayer-funded programs like food stamps and Medicaid to make ends meet.
“Do you know what it means when somebody pays you minimum wage? It’s like, ‘Hey, if I could pay you less, I would,'” Reich said, reflecting on his time working at McDonald’s.
Trending: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential.
Profit Can’t Be The Measure Of Public Value
The goal of government, Reich argued, is to “make life better for the people.” He pointed to the very first sentence of the U.S. Constitution, which says the government should “promote the general welfare.”
That mission doesn’t generate profits, and that’s okay. “Making a profit is not the point of government,” he said. “Should we gut health care services for our veterans because it’s not profitable? What about inspecting our food? Should we cut Social Security and let seniors starve?”
Reich listed services like schools, highways, libraries, national parks, and mail delivery as examples of public goods that benefit everyone, and aren’t supposed to turn a profit.
See Also: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.
The Real Meaning Behind ‘Run It Like a Business’
According to Reich, when politicians say they want to run the government like a business, what they often mean is they want to privatize services to benefit corporate interests. “Wall Street would love to have its hands on your Social Security,” he said. “The Trump Organization would love to turn Yellowstone National Park into a private resort for only the wealthiest to enjoy.”
Reich added that President Donald Trump is hardly a model for business success, saying, “Trump sucks at running businesses anyway. I can make a whole video about Trump’s many, many business failures. And I have.”
“It's not about ‘efficiency’ or because these public goods ‘cost too much.’ That’s rubbish,” he added. “Private corporations want to profit at your expense.”
Reich concluded by emphasizing that U.S. citizens are not customers and politicians are not CEOs. “They are supposed to be public servants. They are supposed to be working for us,” he said. “The purpose of government is not to show a profit. It's to achieve the common good.”
Read Next: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
Image: Shutterstock
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
