A basic observation about the economy is that it seeks the most efficient shape of things. It’s like a bubble, which in the absence of outside forces, assumes the shape of a perfect sphere. The more outside forces are applied to the economy, the less efficient things will be. So when government is expected to accomplish something, it will be one of the most inefficient ways to get it done. First, the government must acquire the funds it needs, which will be many more dollars than competent, private citizens would need to accomplish the same thing. It acquires these dollars by taking them from those private citizens, so that they must do their own work with less. Then, government must process the project through its bureaucracy. Eventually, it sets to work on the project, perhaps even paying the same private citizens to do part of the work, who might have accomplished the whole process themselves to begin with. Thus, the outside force of government upon the economy imposes massive inefficiency. Furthermore, the original work of private citizens is able to create wealth within the economy, while the government is incapable of creating wealth; it can only use the wealth it takes away from its citizens.

Here is a striking example of the amazing difference between the natural efficiency of work accomplished by private citizens, versus the work accomplished (or not, in this case) by government.

Leave a Reply