Economy is subdivided into two sectors, public and private. Private sector is the sector of economy which is run by individuals with the minimum interference from the government. This sector is aimed at getting profit. Public sector is the sector of economy which is run by the government (local, federal or state) for the public good. That is why we may conclude that the private sector differs from the public sector of economy in the respect that it is aimed at getting profit. Private economic producers are all kinds of businesses, like the ones that produce food and drinks (the “Coca-Cola” company) or clothes (for example, “Nike” or “Reebok”). The public sector maintains the army, provides running water and electricity, postal services and medical care. But actually it has always been a debatable question to which sector of economy this or that service should belong. Let’s consider medical care, for example. In any case health care for individuals should be in the public sector. But, of course, it can be in the private one as well. I mean that businesses can be allowed to provide medical services but each member of the society, no matter how much the person earns, must have an opportunity to be cured in case of some illness. As for parks, they demand great investments and are unprofitable. But they should be run for the public good. That’s why they belong to the public sector as well. Of course, the spheres of influence of these sectors are different. But nevertheless both are indispensable.
