Limited Government, Government Workers

I thought I would share my comments on a current debate that I am having with friends over whether limited government supporters are hypocrites for taking government handouts. Here is what I had to say:

“The issue at hand on whether or not taking government benefits is hypocritical, while criticizing government to me can be explained through public choice economics.  Gordon Tullock from George Mason (University), who should have won the Nobel Prize in Economics with James Buchanan, wrote a very interesting article that relates to this subject. It is entitled “The Paradox of Revolution.” He uses an interesting example…

“Ruritania is governed by a vicious, corrupt, oppressive, and inefficient government. A group of pure-hearted revolutionaries are currently attempting to overthrow the government, and we know with absolute certainty that if they are successful they will establish a good, clean, beneficial, and efficient government. What should an individual Ruritanian do about this matter? He has three alternatives: He can join the revolutionaries, he can join the forces of the repression, or he can remain inactive.”

He then comes to the conclusion that the benefit of revolution is public good, while an individual joining would have a near-zero chance of changing the outcome. But also, if the revolutionary forces win, he will benefit from the public good even if he does nothing. And doing nothing decreases his chance of jail, injury, or death if he joins and the government wins or puts up a good fight.

Therefore, economically, his incentive is not to join the revolution as the low probability of success combined with the large punishment for failure is much higher then the public good that he himself cannot influence but in the .00001 percentage.

A comparable example would be what if in a presidential popular vote election your chance of dying was 1 out of 10 and your chance of changing the election is 1 in a million. The individual would not vote even though he knows if his candidate wins the country will be better off.

So how does this relate?

Any individual who benefits from the government whether its a politician, a farmer who gets subsidies, or an government bureaucrat has no individual incentive to quit his job even if his believes are that his job shouldn’t exist say for example. The government bureaucrat knows that even though the public good would be better off without the existence of his job, does not mean that him quitting would change anything at all. More than likely the government would hire someone else and would spend more money doing so.

One government bureaucrat quitting their job, or in the case above one Congresswoman refusing her government health care is not going to change the outcome of government health care. All it does is impose costs on the individual and benefits to no one.

So folks, this is exactly why big government exists.

We assumed in the example above that we knew with 100% certainty that the new government would be the best government the world had ever seen. And that is a big assumption. Most revolutions that occur in the world are merely trading one dictator for another. One could argue that, in fact, the American revolution is one of the only examples in history (maybe the Roman revolution from kings to republic) is the only non-example of this.

Limited government is filled with public goods, while big government is filled with individual handouts and this is why every limited government in the history of the world has turned into big government.”

Published in: on March 17, 2011 at 8:58 pm  Comments (1)  
Tags: , , , , ,

What is Public Choice?

Public Choice was invented by George Mason University’s Nobel Laureate James Buchanan and his partner Gordon Tullock.

It is taking political science and using economic theory to explain what happens. It studies politicians, voters, bureaucrats, and lobbyist and applies self-interested rational behavior to it. Then it usually find economic realities to fix the problem.

Professor Thomas Rustici teaches a very interesting and passionate undergraduate course at GMU. I urge anyone and everyone to take this course. It should be a prerequisite of all Government majors, but then who wants to be called useless and wrong a lot of the time.

Books that are required for that class include:

Regulation, the Constitution, and the Economy by James Edwards

The Anti-Capitalistic Mentality by Ludwig von Mises

Lost Rights by James Bovard

Capitalism: The unknown ideal by Ayn Rand

The Road to Serfdom by F.A. Hayek

I highly recommend all of these books but specifically recommend the Bovard book.

Do you think the government follows the Constitution and respects your rights?

Wrong, it one of the most cited book I’ve ever seen.