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Government failure

Quote 607

There is a bias toward policies with immediate, highly visible benefits, and deferred hidden costs, myopic policies for myopic voters. Special interests induce coalition building politicians to impose small costs on the many to achieve large benefits for the few.

Government failure is the brother of market failure, and the reason we have a market at all. There are some things Government cannot do well.

Government provides solutions for things that are not problems.
Informal organisation is important in societies . State control destroys this.

I do see a perception from a few here that government must somehow be a part of a solution. "How insidious the detrimental parasite that convinces the host of its necessity".

We have a ponzi economy, like madoffs company, seems fine for a long time, but really the forces of destruction are building.

Governments and govt departments traffic in human misery

  • Government creates moral Hazard
  • Socialises losses
  • No one cares about the risks taken
  • Politians are unlikey to do what would make them feel unnecessary.
  • Governments put costs on the credit card
  • Government sometimes rules by fear
  • When government fails to provide quality services, letting them define what quality is, is laughable.
  • Government interference quite often stifles competition and creates a one size fits all solution
  • People see problems in terms of lack of regulations
  • The government commits fraud, just think of all the lies they tell us about social security and the lies the politicians tell us at election time.
  • The government can't run the banking system, they can't even run the post office.
  • You will go broke if you take your advice from any government. (Jim Rogers)
  • State diminishes human beings.
  • Trust has broken down between state and public. 
  • Risk adverse government based on no evidence. 

Government underplay their involvement in crisis's

  • If something goes wrong and its the governments role to make the regulations. The government blame the thing that went wrong, but don't admit they didn't make the regulation they should have.
  • If something goes wrong and it is regulated, the government say they need more regulations and blame what went wrong. They don't admit they were incompetent to make the regulations properly the first time.
  • If government make a regulation that causes things that go wrong, they still blame the people that carry out those regulations and say more regulation is necessary to stop the bad effects of the first regulation.
Then they expect us to trust them when they make regulation.

Interference in contracts

The right to contract is the foundation of the economic system. If we knew that the the other party in the contract would not comply because of government intervention, the contract would be useless.

Why it can't work

They can't pave the roads, they can't stop drug use, they can't wrap up Afghanistan or Iraq, they can't control the climate of the Earth and cow farts, they can't check every home for efficient light-bulbs and proper fixtures, they can't make sure everyone is healthy, they cannot manage the economy, but this is what they are attempting to do all at the same time

From EA magazine

Those in government suffer a knowledge problem and an incentive problem when it comes to designing intervention. Even if  the intentions behind general well-being policies are benevolent, how will the government know what aspects of well being to    maximise and by how much? In addition Government officials face perverse incentives in both designing and implementing policies
It means narrowly focused special interests can successfully have their agendas passed and legislators garner support for these groups in exchange for supporting future votes benefiting other narrow interests.


Failure to tackle immigration