Politics

The Separation of Economy and State

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In a representative republic the government is a group of fallible individuals who we elect, usually based on the ideas or philosophy of that person, hoping that they will stick to the principles that they represented during the campaign, along with bureaucrats, who are the people hired by the elected representatives to implement the laws passed.

In the forced exchanges between government and the people there is always a winner and a loser, whether it is a policeman giving a ticket, or a business receiving a fine for violation of a rule implemented by the government where the private citizen or business is the loser, or on the other hand when an unemployed person or a “poor person” receives a government check where the government(funded by us) is the loser.  Though it could also be argued that both parties in these instances is the loser.

In the free exchanges between private people or businesses there must be an incentive for both parties to enter into an exchange, it must be a win/win situation.  Whether it is someone selling their time to an employer,  someone purchasing a product from a store, or someone getting married, making friends or writing a blog.  In every instance in a free society the decisions you make are you trading something you value for something you value more.  These transactions create wealth and prosperity, both in the economic sense and in the personal sense.

The government has no way of creating wealth in the economic sense, though they do provide some basic services that provide us with some value, that exists, only, within the proper role of government.  That is to provide for the security and protection of our natural rights from the threat of force, things like theft, robbery, assault, murder, trespassing, vandalism, invasion, fraud and other crimes.  Also to provide a system to resolve disputes between private entities.

The government has only three ways of obtaining the economic means to provide these service and any other services that they take upon themselves.  Taxes, borrowing(future taxes), and inflation(print more pieces of paper with pictures on it and say they have more).  All three ways remove value out of the private sector that would normally be used to create additional value and wealth.  Every welfare program, every unnecessary construction project, every subsidy, bailout and foreign aid dollar is forcefully taken out of  the hands of the most productive members of society who would use it to create more wealth, jobs and prosperity and put it in the hands of those who are the least productive, those who’s business is dependent on government contracts or subsidies, or in the hands of foreign dictators and governments which adds no value or prosperity and only creates temporary jobs.

In addition to the wasteful spending of plundered wealth in an unprincipled and unproductive way, the government has also inserted itself into every aspect of business in modern America through laws and regulations that are subject to every whim and favor of the individual politician and bureaucrat.  Regulation that increases cost to the businesses through direct spending on fees and fines, through spending on staff necessary to comply with the regulations and an untold amount of time spent focusing on the multitude of regulations that have to be followed.  All of this time and money wasted on regulation that would otherwise be spent in a productive way to improve and grow business, hire employees that would add to the value of the business or be spent in other ways that added value to the business and economy as a whole.

Finally, everybody deplores the lobbying efforts and campaign donations of businesses, unions, non-profits, and even governmental organizations themselves.  It gives the appearance of favors being bought and sold, and it certainly sways the votes of our legislators and president.  Last year there was $3.5 billion spent on lobbying , this does not include campaign contributions, or ads purchased in an effort to get a certain politician elected.  Why was all this money spent?  It was because the people this money is being spent on have direct control over the businesses that are donating, through the regulation of those companies.  Its all money spent by businesses and other organizations in an effort to stay in business.  They are afraid that if the wrong person gets in office, or their competitor lobbies or donates just enough to get preferable treatment from an office holder they will be one signature away from being put out of business.  This is all money that would otherwise be put to positive and productive use if it was not necessary to buy influence of the government.  Instead, it is wasted in the bottomless pit of the favor traders and creates no value except to prop up unprincipled politicians willing to sell their soul to the highest bidder.

How many trillions of dollars are sucked out of our productive economy to buy influence, comply with regulation, pay for the moochers and looters and prop up the unproductive?  How much innovation, and prosperity have we lost out on because of the wasted substance spent on things other than productive pursuits?

The solution is a wall of separation between the economy and state.  If the government was restricted to its proper roll, we would have billions of dollars now being spent on welfare programs that we could put to productive use, and think about how much easier it would be to voluntarily give to charities if we had that money to spend ourselves.  If the government had no regulating power over business, they could focus their time energy and money on growing their business, research and development, and other productive pursuits.  The lobbying money would dry up as the businesses and other organizations could no longer buy influence over government officials, and campaigns would have to learn to run on a fraction of the budgets they currently do, for the lack of business donors.  Additional billions would be saved by no longer needing the bureaucrat regulators who enforce the current web of regulation.

Who needs campaign finance reform?  Who needs another stimulus bill?  Get the government out of our economy.