In which case they would form a government that worked for them, which may or may not be free market (how do you know free market is the best in every scenario?)
I understand your skepticism, but I've written at length about this kind of things to the forums. I'll try to dig up some links for you...
The following is quoted from previous threads. I have not "quoted" them here, because it italicizes, and that's annoying to read...
Government spending money - it "stimulates" the economy more if they don't spend the money at all. It's fallacious to look at the amount of money spent, but instead, you have to look at capital.
The value of money is dependent on how people value money, which itself is dependent on the supply of money and the amount of goods buyable with money. Ultimately, the economy itself depends not on the money itself, but on the goods that are produced.
We'll look at 3 scenarios - Government spends the money, Government burns the money, Government taxes less.
Scenario 1 - Government spends the money
If the government spends the money, they must choose where to spend the money. Now, understand how the free market works - by companies competing with one another, there is competition, and the most able company - the one that is the most able to engage in mutually beneficial trades with consumers is the one that will be victorious.
Government spending, however, upsets the mutually beneficial trades between consumer and company by helping one particular company - giving it an unfair advantage over the other companies. Thus, certain companies may be favored that are more inefficient at satisfying the consumer (through mutually beneficial trades) than other companies because of government sponsorship.
Now let's look at scenario 2.
Scenario 2 - Government Burns the Money
It looks awful - the government is burning the money! However, notice that the government is - 1. Decreasing the supply of money, and 2. Not affecting the amount of goods in the country. They are doing nothing but affecting inflation. In fact, they are making everyone else's money worth more!
Obviously, severe deflation, like in the Great Depression can have a negative impact, especially if a person is at a constant income or making constant payments over several years. However, notice that you're not hurting the economy directly - you're only making everyone else's money be worth more.
Scenario 3 - Government taxes less
If the government taxes less, then the government will have a smaller share of capital, meaning that people will have a relatively larger share of capital. Because of this, people will be able to have certain trades that they would not have had otherwise. Through free trade, they will be able to "stimulate" the economy in a more efficient way.
1. People will pursue what they pursue (basically, to say that people will do anything else, like "
eople should buy healthcare" is false, OR, if it is true, then it confuses correlation with causation).
1A. People will not pursue that which they believe is bad for them - they choose what they want for their own lives out of their own choice.
2. Government spending requires money to have come from somewhere. Wherever this money originated, it would have been used for that person's benefit the best way they saw it.
2A. Thus, government spending ignores that which is not seen, and it results in a net negative happiness.
Alternate ending:
3. Government spending requires coercion to achieve its end, as it is something people will not do voluntarily - otherwise, there would be no "need" for government intervention.
4. Thus, through coercion, you interfere with 1A. You interfere with a person pursuing what they want, and thus create negative happiness by forcing a particular government policy.
A response by aknerd:
Okay, I have many problems with your argument here. But, in the spirit of being concise and understandable, I'm just going to point out a few flaws.
You're trying to write a logical proof that states all government spending is unjustified. You make logical points, so good job there. BUT you don't prove anything, ironically for the very same reasons that you critique the government for. You "ignore that which is not seen".
The jump from "
eople will act in their best interest" to "government spending gets in the way of this action" is a leap of faith.
Because, while it is logical that people want to act in their best interest, you never prove that people are capable of these actions.
Furthermore, you never never prove that people are capable of knowing what they want.
You never prove that the government can't act in someone's self interest better than that person can.
In order to prove that government spending ALWAYS results in net negative happiness, you must prove all of these things. I'm not saying one can't prove them, just that you definitely have not.
NoName started a very interesting thread on a few of these subjects a while back, you should check it out if you want to improve your "
roof".
(You'll have to find the thread yourself...)
ps: before you start arguing with me personally on these issues, I'm just pointing out holes in your argument, not stating my position on these issues.
My response:
ps: before you start arguing with me personally on these issues, I'm just pointing out holes in your argument, not stating my position on these issues.
I'm want to improve the argument. I'm glad that you are critiquing it, because I just wrote it out once, and so it needs to be refined a bit...
The jump from "
eople will act in their best interest" to "government spending gets in the way of this action" is a leap of faith.
I agree that this needs to be expressed more clearly - the reason that government spending gets in the way of this action is that gov. spending requires coercion to be enacted, thus interfering with what would have occurred. If I can find a better way to express this idea...
Because, while it is logical that people want to act in their best interest, you never prove that people are capable of these actions.
This argument caught me off guard for a minute. However, this argument simply justifies government spending for that which benefits people as a whole, - bla...
I'm trying to explain this: Say the military or police actions as a whole are worth $100 (choosing a random number) to a person. But even if he were given the choice, he would not simply "donate" $100 to the military / police force, because the difference that money will make is negligible, and thus he will not benefit from his investment at all. Because of this, many people will not benefit from a potentially beneficial investment. This is an example where people are not capable of acting in their best interest alone - but as a whole, they would benefit.
However, with all other aspects of trade, these can arguably be solved by the private sector better than by the public sector. In addition, this argument is especially against that government spending which is designed to "stimulate the economy."
Furthermore, you never never prove that people are capable of knowing what they want.
This is postulated. If any people can think of a way to suggest / demonstrate / prove / refute this, then please do so.
You never prove that the government can't act in someone's self interest better than that person can.
If people know what they want, and if these people are capable of these actions, then the government cannot act in someone's self-interest better than that person can.
Ideally, these would be included in the proof itself, but I can append this as a responses (to the "
roof"
and defenses (of the "
roof"
.
Looking over it all, should I have made links instead?
Sources:
http://armorgames.com/community/thread/6998551/taxes/page/1 (from this point onward)
http://armorgames.com/community/thread/7003649/predict-what-will-happen-to-our-country-if-we-keep-spending-money/page/3 (from this point onward)