This archive report was first published on 7 July 2019.
Opinion | There Should Be a Public Option for Everything ¶
Published on July 7, 2019
As the debate between capitalism and socialism continues, a growing consensus is emerging that capitalism needs major reforms to survive. One way forward is the public option, a concept that has been around for centuries but is gaining new attention in the context of modern America.
From public libraries to public parks, public options have been a cornerstone of American society. They provide essential services that coexist with the private marketplace, promoting equal opportunity and reconciling markets with democracy. For example, public libraries allow anyone to read, check out books, or surf the internet, expanding educational opportunities and guaranteeing access to information for everyone.
Public options also benefit competitive markets and make capitalism work better. Public schools guarantee an educated workforce, while services like public transit and the post office support economic activity. The public option competes in the marketplace with private options, expanding choices for consumers and acting as a check on monopoly power in concentrated sectors.
However, the history of the public option is not without its challenges. In the Jim Crow era, public pools in many places were off-limits to black Americans. But as the civil rights movement made strides in opening public accommodations to all, public options became more inclusive as well.
Today, the public option is being re-examined in the context of modern America. Consider broadband internet, which is essential for economic growth and development. More than a quarter of Americans in rural areas lack access to even moderate-speed internet, while almost half of neighborhoods have only one option for high-speed internet. A public option can go a long way in expanding access while introducing healthy competition.
Chattanooga, Tennessee, has had a public option for high-speed internet since 2010, and today more than 100,000 residents and businesses take advantage of it. Or think about child care, which is a significant burden for many young families. A public option could significantly expand access and help working families and their children, without constraining those who want to hire a nanny or send their kids to a private day care.
Political leaders and policymakers are noticing that public options can help reform capitalism without abandoning markets. There are proposals for a public option for basic bank accounts run through the Postal Service or the Federal Reserve, which would connect millions to the financial system and include services like direct deposit. The 2020 Democratic presidential primary already features a robust debate about moving toward a true public option in higher education, where post-high school training or college would be free for everyone.
Of course, public options can be designed poorly and can fail for lack of resources, just like any other public or private service. Policymakers promoting public options also need to be attentive to structural racism and regional disparities. But Americans don't need to resign themselves to vicious capitalism, just as generations before us didn't. And the idea that public action and markets are incompatible is simply false.
