Why A Government Run Market Can’t Work

First we have to accept that there is no perfect system possible. People are people, for good and ill. All we have to work with are incentives.

People who gravitate towards working for, with, or through government almost all have an urge to power, to control what people do. Whatever area of power a government is authorised to operate upon, the boundaries of that area will do nothing but grow ... and grow and grow.

People who do not pay for what they get almost always abuse and/or overuse it, no matter how vital or trivial. Anytime you give something to people for "free," they will never say they've got enough of it. There will always be a demand for more.

Everyone as a buyer wants to get the most they can for the lowest cost. Everyone as a seller wants to get the most money they can for what they sell.

People also tend to be caring, to be generous when they can afford to be, to think they are doing good, not only for themselves, but for the people they care about and even people in general. But people think they know more and are more competent than they really are. They tend to oversimplify the complex and make the simple complicated. Either that or abdicate the authority to choose for themselves to those they deem smarter, more powerful, and better informed than they are. However, no one can know more or can be more concerned about any individual's needs, wants, and desires and how much they value what things, in what proportion, than that person themselves.

While there are always exceptions for every rule about human nature, these are pretty near universally true.

Anything that you try to set up that doesn't take *all* of these into account is going to fail to achieve its stated ends. It will do too much or too little. It will result in the wrong things being done at the wrong times done by the wrong people with wrong information. No one will be happy with the results.

Top down, command and control, never works in the long run. Even in the military, which comes closest, the best structure delegates detailed decision making to the lowest level possible, to the ones with the most knowledge about the actual situation at that specific place and time in the context of the operational goals.

Micromanagers at the top in the military get a lot of people killed. Micromanagers in any large organization waste assets and misdirect efforts, whether it's in a government bureaucracy or a company. They simply *cannot* know enough to make the best decisions for others. No one, even with the most powerful computer and big data, can. It's hubris to think otherwise.

The best system to get the most good for the greatest number is no system at all. To let those who know their own situation best make the decisions. Who know what they value and how much and what their own personal goals are.

Then use the general benevolence of people help those who cannot help themselves. Their desire to maximize their gains, even in the emotional sense, is tempered by wanting to get the most for their time and money and so weed out the grifters. To decide for themselves which charity is doing the most good in the particular area they care about with what they are given, which means low overhead and minimal waste.

Government, by its very nature, cannot be efficient. It cannot take individual situations into account. It cannot change directions swiftly under changing conditions. It cannot operate under anything but bureaucratic structures with all the power grabbing fiefdoms and resource wasting procedures that it inevitably results in.

To try to put something important under the control of a system that ostensibly tries, but simply cannot be, all things to all people, while wasting valuable and scarce resources in people, facilities, and money is an incredibly bad choice.

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Paying For A More Perfect Government

The basic ethical ideal of a perfect state is that perfect justice is always perfectly done, but how do we pay for it?

People are not always rational. Miscarriages of justice will happen. Getting the just restitution (and costs) due actually paid by those found liable in civil or criminal cases is not always possible. People want what they want but they often don't want to pay for it until and unless they actually need it themselves.

A person who's never been in trouble with the law or has never been offended against often doesn't put a lot of value (and value judgements are always subjective) into the ongoing operational costs of a justice system. On the other hand, a person who has been sued or charged with a crime, rightly or wrongly, or has been offended against, suddenly puts a lot of value into a justice system that will give them the outcome they want, whether actually just or not.

That's simply human nature.

Accepting all this reality means that there is no perfectly just system possible. It then becomes a matter or looking at the various possibilities and finding the trade-offs that come closest to it.

Voluntaryism is great, but is rarely sufficient.

The general benefits of a justice system are amorphous. They often can't be pinned down to what person gets what value or even what that value is.

A person who owes, whether to the justice system for costs or to the person to whom reparations are due, may simply be unable to ever pay them.

And all of this doesn't even start to consider the ongoing costs of a military capable of defending a given geographical area in today's world.

So it may be that some sort of tax is the most just feasible way of distributing those costs.

Then the question becomes what kind of tax.

A head tax would be the most just, based on the assumption that everyone's life is of equal value. But the reality is that many people would be simply unable to pay an equal portion of all the costs associated with even a minimalist government.

So we need a measurable characteristic that will, as justly as possible, also take into account a person's ability to pay. Monetary value of something, especially when we're considering monetary financing of a system, is the next best way.

But how do we determine an objective value for something in and of itself? We can't, since value is subjective. The closest we can come is the value that two people place on something at the time when it is actually transferred from one person to another.

That brings us down to another two choices. The tax can be assessed on the sale itself or, for durable goods or land, an ongoing assessment.

Both of them have significant problems. For a sales tax, who collects it? How do you enforce it? For durable goods or land, what do you do about the fact that some assets depreciate in value over time and other appreciate. Who decides the value at any given time? And, once again, how do you enforce it?

At this point I've got more questions than answers. Some sort of compromise among all the possibilities has to be reached. Some sort of answers have to be decided upon. But I don't feel competent to declare what those compromises and answers *should* be.

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