The Final Word
Can a Country Be Run Like a Business? The Trump Experiment
The idea of running a country like a business is often presented as a means to improve efficiency and accountability within government. While corporate principles such as strategic planning, financial discipline, and performance measurement have their place in public administration, this comparison fails if it does not first redefine what constitutes “profit” and “shareholder value” in governance. Unlike corporations, which measure success in financial terms, a government’s success is determined by the well-being of its citizens and the strength of its institutions.
This means that a government’s real “profit” is the quality of life it provides its people. Education, healthcare, infrastructure, security, and social welfare are not merely expenses but essential outputs of a well-functioning state. A government that prioritises cost-cutting at the expense of these services risks failing in its fundamental duty to serve its citizens. However, just as cost-cutting without regard for long-term viability is dangerous, so too is excessive intervention that stifles innovation, economic activity, and individual freedoms. Effective governance requires balancing fiscal responsibility and strategic investment, regulation and market freedom, stability and adaptability.
The Balance of Regulation and Public Welfare
Governments must regulate industries and social systems to ensure fairness, protect consumers, and maintain public order. However, over-regulation can create unnecessary bureaucratic barriers, discourage innovation, and slow economic growth. Excessive control can lead to inefficiency, increased costs for businesses and individuals, and an over-reliance on state intervention, reducing personal and corporate responsibility. If the regulatory burden becomes too great, companies may relocate, investments may decline, and economic stagnation may follow.
Conversely, under-regulation can lead to market failures, exploitation, and instability. Insufficient oversight in critical sectors such as finance, healthcare, and environmental protection can result in systemic crises, economic inequality, and long-term societal harm. The 2008 global financial crisis, driven by deregulated banking practices, is a stark example of the dangers of prioritising short-term economic gains over systemic safeguards. Similarly, under-regulated industries may engage in exploitative labour practices, environmental degradation, or monopolistic behaviour, eroding public trust and financial sustainability.
The role of government is not to eliminate regulation but to ensure that regulation serves its intended purpose without imposing undue burdens. A well-functioning state recognises that rules must be clear, enforceable, and proportionate to the risks they seek to mitigate. In the same way, a successful business understands the importance of balancing cost controls with investment in growth, and a government must balance regulatory oversight with economic and social progress.
Public Investment as Long-Term Profitability
If a country were to be run like a business, its shareholders would not be private investors seeking monetary returns but the entire population, whose “dividends” come from public services, security, and economic opportunity. Public infrastructure is an asset, not a liability, and investments in healthcare, education, and social stability are not expenses but capital investments in national prosperity.
Governments must maintain fiscal responsibility, ensuring that resources are allocated effectively and public debt is managed sustainably. However, a fixation on cost-cutting at the expense of essential services creates a false economy. Neglecting infrastructure maintenance leads to higher costs in the long run. Failing to invest in education reduces workforce productivity. Weak healthcare systems create broader economic and social burdens.
The actual test of economic management is not merely balancing budgets but ensuring that spending delivers measurable benefits to citizens. This is particularly relevant in the regulation of industries that provide essential services. For instance, an under-regulated private healthcare system may prioritise profitability over patient care, creating disparities in access to treatment. Conversely, an overly centralised healthcare model may lead to inefficiencies, rationing, and a lack of innovation. The challenge for governments is to create frameworks that incentivise quality and efficiency while ensuring that public goods remain accessible.
Parallels with Not-for-Profit and For-Purpose Organisations
The same principles apply to not-for-profit and for-purpose organisations, which operate under financial constraints but do not define success by revenue growth. Instead, their profit is measured by the impact they create. Whether in environmental conservation, poverty alleviation, medical research, or community support, their ability to achieve their mission depends on effective resource allocation, sound financial management, and well-designed regulations that encourage rather than hinder their work.
Financial sustainability must coexist with mission-driven outcomes for both governments and for-purpose organisations. Poor fiscal management can undermine even the most well-intentioned initiatives, while excessive bureaucracy can restrict agility and innovation. These organisations must balance accountability with flexibility, ensuring compliance does not become a burden that detracts from their purpose.
A New Perspective on Governance and Economic Management
The lesson from government and for-purpose sectors is that fiscal responsibility and purpose-driven leadership must go hand in hand. Running a country like a business is only viable if we redefine the success metrics to reflect the fundamental purpose of governance. The measure of an effective government is not simply a budget surplus or an attractive tax policy but a society where public services function effectively, economic opportunities are accessible, and citizens are healthy, secure, and engaged.
A government focusing solely on cost-cutting without investing in public welfare is no more successful than a corporation prioritising short-term profits while eroding long-term sustainability. Just as responsible corporate leaders invest in workforce development, research, and customer satisfaction, responsible governments must invest in their citizens, infrastructure, and social fabric.
At the same time, governments must ensure that regulation and oversight enable, rather than hinder, economic and social progress. Over-regulation can lead to inefficiency and stagnation, just as under-regulation can create crises and systemic failures. Like best-run businesses, the best-run governments develop environments that foster innovation, competition, and growth while maintaining the safeguards necessary to protect public interests.
Ultimately, governance must be about service before profit, sustainability over short-term gains, and long-term prosperity for all rather than financial windfalls for a select few. In this sense, a genuinely successful government does not operate with the mindset of a profit-driven enterprise but as a steward of national well-being, ensuring that resources are used to build a stronger, more resilient society for the future.
Eric Allgood
Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.
He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.
Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.
Qualifications:
- Master of Business Law
- MBA (USA)
- Graduate Certificate of Business Administration
- Graduate Certificate of Training and Development
- Diploma of Psychology (University of Warwickshire)
- Bachelor of Applied Management
Memberships:
- Small Business Association of Australia –
International Think Tank Member and Sponsor - Australian Institute of Company Directors – MAICD
- Institute of Community Directors Australia – ICDA
- Australian Human Resource Institute – CAHRI
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