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I know this is a large question, so I'm looking for a broad, general understanding only. Are there any principles using which it may be decided to meet a societal need using a public project rather than private enterprise, in a free market economy? What are all the factors that need to be considered? Moreover, is the government only supposed to provide public goods?

Joebevo
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  • Is the development of the F-35 warplane by the private company Lockheed Martin a public project or a private enterprise? – Giskard May 28 '19 at 08:02
  • "is the government only supposed to provide public goods" According to whom? A lot of politics is about this normative question. Please address the comments by editing your question, not by replying in comments. – Giskard May 28 '19 at 08:03
  • That depends on your normative views and what decision criteria you apply. I think this question is too broad to be answered here. If you go for economic efficiency private enterprise is probably a better idea if competition is high and external costs are low. For public goods private enterprise tends to result in suboptimal outcomes in terms of efficiency. – redleo85 May 28 '19 at 12:47

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