The Failure of The American Government

2200 Words5 Pages

“Everyone wants to live at the expense of the state.They forget that the state wants to live at the expense of everyone.”
—Frédéric Bastiat

I—Introduction

This essay argues that argumentation to promote policies which reduce government waste is futile as a conduit for actual change. Politicians will do what makes them survive in their profession, and if they do not they will be replaced by those who do. Advances in economic science have made it clear that well-functioning markets enhance welfare, yet many industries are protected by tariffs if not directly by money from the government, labour markets remain distorted in various ways, and rent control is still not uncommon. If improvements could come about through public debates, they would have done so by now.

This essay will discuss the failure of advocacy, but also how waste might yet be minimized by competition between governments, achieved by decentralization. Since such a process also depends on citizen preferences, it seems a distant prospect. However, advances in technology may enable man to reach new frontiers whose governments can compete with extant ones. Such competition leads to differences in well-being, which, when big enough, cause migration towards the better-managed places. If tax havens now restrict taxation in developed countries, more intense competition ought to force waste down even further.

One might think of this venue as a “technological” one. In a world suitably described as in equilibrium, such venues are far more likely to bring about improvements in how states are managed than is advocacy, which cannot change the incentives underlying the equilibrium. The most promising ideas to reduce government inefficiency are therefore technological rather than...

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