2 thoughts on “What should the government do, and what not?”

  1. Posted 21/04/2017 at 11:49 | Permalink

    Actually, there are two types of people – those in the pay of the State and those who are not in the pay of the State.

    Being in the pay of the State means that these people can use their official position to perform the functions of the State (such as fixing market failures or using the tool of regulation to curtail anti-competitive behaviour), by authorising the expenditure of public funds and committing other people also in the pay of the State underneath them, to make things happen.

    More often than not, this involves buying goods and services, worth some £200 billion or so, from people who are not in the pay of the State – namely, the Private Sector or sometimes, the Third Sector.

    But the problem with people in the pay of the State is that they are not well-informed about how the Private Sector works. Indeed, they haven’t got a clue about what it is that drives the behaviour of for-profit organisations in the free market – not least, because they have not spent a single day of their lives in the Private Sector – and yet they have been put in charge of spending taxpayers’ money to buy goods and services from non-public sector organisations, for the benefit of the public. Their standing is further undermined by the fact that their ability to solve problems and innovate, which is a distinctive characteristic of the Private Sector, has been erased in the Public Sector due to incessant conditioning of the mind from an early age.

    Which would probably explain why some parts of the Private Sector such as the Defence Industry, for instance, has failed so miserably to deliver military equipment to the Armed Forces which is fit for purpose, adequately sustained in-service and constitutes value for money through-life, for as long as anyone can remember.

    Instead of doing the decent thing and educating people in the pay of the State about the ways of the Private Sector, Defence Contractors are busy exploiting their ignorance, for only one purpose – relieving them of taxpayers’ money!
    @JagPatel3 on twitter

  2. Posted 22/04/2017 at 12:59 | Permalink

    The primary role of the State is to uphold and defend the property rights of its citizens.

    As only the creation of a good or service and its provenance confers a moral property right, this has profound implications of what type of taxes the State can levy and at what level. It also changes the how the State manages our shared environment.

    The fact most people do not question our current consensus regarding property rights is the root cause of excessive inequalities, economic dysfunction and large, overweening State apparatus.

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