Rethinking the role of government for a sustainable future

The Federal budget is on an unsustainable path. That sobering conclusion from the non-partisan Concord Coalition, detailed in their recent report, underscores the urgency of addressing deficits, debt, and dysfunction in the United States. While such warnings are far from new, the Coalition’s analysis paints a dire picture of uncharted territory: ballooning deficits, soaring debt, and compounding interest payments that threaten to consume vital resources. Yet, amid the predictable debates over Social Security preservation and wasteful government spending, the larger question often goes unasked: What is the purpose of government?

Answering that question requires both clarity and courage. There are undeniable areas where government is indispensable; interstate highways and the nuclear triad come to mind, among others. Those functions—too large, complex, or essential to be entrusted to the private sector—represent the core responsibilities of a functioning government. Yet, as the Concord Coalition’s report reveals, much of the Federal budget is consumed by programs and functions that may be better served by the private sector.

The administration’s proposed “Department of Government Efficiency” (DOGE) offers a potential framework for rethinking these roles. To be truly transformational, DOGE must go beyond surface-level reductions in force and embrace the power of privatization. By transferring suitable functions to the private sector, we can unlock the innovative potential of free markets: voluntary exchanges, competitive pricing, and the innovation and efficiencies that are best driven by the profit motive. Privatization isn’t just about cost-cutting; it’s about creating jobs, generating wealth, and allowing government to focus on its core competencies.

Consider the federal budget’s current trajectory. According to the Concord Coalition, deficits are projected to average 5.8% of GDP over the next decade—well above the 50-year historical average of 3.8%. By 2035, the deficit could reach 6.1% of GDP, with debt surpassing 118% of GDP. Interest payments, now the fastest-growing budget category, are set to eclipse defense spending by 2026. This trend is not episodic but structural, driven by an aging population and rising healthcare costs. Programs like Medicare, Medicaid, and Social Security account for nearly all non-interest spending growth, crowding out discretionary investments in infrastructure, education, and national security.

Addressing these challenges demands a comprehensive reevaluation of government priorities. Social Security and healthcare programs, while vital, must be part of a broader conversation about sustainability and efficiency. Mischaracterizations and hyperbole from both political parties have clouded the debate, distracting from the fundamental issues at hand. Instead of perpetuating divisive rhetoric, let’s consider what functions truly belong within the scope of government—and what can thrive under private-sector stewardship.

Privatization is not a panacea, but it offers a path forward. Successful examples abound, from utilities to transportation systems, where private entities have delivered superior outcomes at lower costs. By applying these lessons to federal programs where appropriate, we can harness the best of both worlds: a leaner, more focused government and a dynamic, opportunity-driven private sector.

The poetic license of campaign rhetoric may have dulled the urgency of fiscal reform, but the numbers don’t lie. America’s deficits and debt are unsustainable. Rather than continuing to kick the can down the road, policymakers must confront these issues head-on. This begins with an honest dialogue about what we truly need from our government and what the private sector can do better.