Murray Rothbard’s “The Fallacy of the ‘Public Sector’” critiques the common understanding of the public and private sectors. It argues that the “public sector” is not a productive force but rather a parasitic entity that drains resources from the private sector. Rothbard claims that government productivity is inaccurately measured by its expenditures, unlike the private sector, which is gauged by voluntary consumer spending. The author contends that the public sector distorts resource allocation, directing it away from consumer needs toward bureaucratic desires. Rothbard suggests reducing the public sector to enhance both moral and economic well-being. Ultimately, the piece champions a free market approach, questioning the justifications for government intervention and highlighting the inefficiencies inherent in public sector operations.