There is only one real difference between public and private management of the economy: The government is, at least mildly,ACCOUNTABLE.
Really? We should not forget where the current economic meltdown began. Congress, particularly one committee in the House, regulated and looked out for the interests of the nation monitoring the financial health of Fannie and Freddie Mac. Chris Dodd and Barney Frank, both high ranking members of that committeereceived the most political money from Fannie Mae and Fannie Mac over the past 10 years (Obama was in the top 3 as well [quite the coup for someone who has not been in politics that long]). Their failed oversight may have gotten Dodd a sweetheart deal on his home loan, but the rest of us? We get the to pay for the bailout. Those two knuckleheads are still on Congress.
When a company fails, it fails a percentage of the people. When government fails, it fails all of the people.
Accountability in government is a shell game.
Not everyone who uses the internet is out to watch television.
A test of internal controls has nothing to do with a company's solvency. A company can be hemorrhaging cash and have excellent controls in place to protect from theft of money and information.
The argument is that the law of diminishing returns applies to government regulation and you can reach a point of over-regulation. Since law is not a monolith we have passed that point in some areas and clearly haven't in others.
There are still people who believe that government cannot solve every problem, and, to stay on topic, the current financial crisis happened with SOX in place. The real problem is that government requires businesses to invest in unprofitable markets and then deregulates when the businesses complain about being over regulated. They create a company (Fannie Mae) then allow said company's leadership to contribute to its regulators in Congress. After 20 years of new laws, unwillingness to repeal older laws, and turning a blind eye, the system is left to teeter until it does the inevitable.
The hardest part of climbing the ladder of success is getting through the crowd at the bottom.