History of Inherently Governmental Functions

Abstract

During the first decades of the American government, when government personnel and resources were scarce, private companies were hired to perform a majority of tasks on behalf of the federal government. A majority of privately chartered corporations formed before 1800 were primarily in the business of providing public services on behalf of the government such as infrastructure, transportation, utilities, and banking. As the federal government grew, so did its capacity to directly perform more public services. However, after witnessing the intense demands on the federal government during World War II, it became apparent that certain goods and services were more efficiently produced and provided by the private sector.