Quote:
Originally Posted by BoLevi
A dollar in the hands of the government is a dollar that is not in the hands of an individual. The private sector is better at allocating capital, so the dollar in the hands of the government has less utility. The dollar in the hands of the government only has more utility than a private dollar if it is still being spent on functions that unlock wealth. The moment the government starts collecting and spending dollars on other forms of capital allocation, they are hindering the potential of the economy. Needless to say we're way, way past that point.
Bonus: governments that went to provide excess services generally crowd out the private sector, reducing innovation and efficiency gains that would arise from a competitive private sector.
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this argument falls apart when you compare something like the US medical system, which is the least efficient way to allocate capital. Paying paper pushers just to push paper is inefficient. Cutting out the middle men with a single payer system where you don't pay people for busywork greatly increases the efficiency of capital. This is easily seen when you compare dollars spent in the US vs every other system in developed countries.
Why is unlocking wealth and capital the item you consider most important? Should, say, happyness be a better metric? And if it is, then chasing maximum capital reduces happyness (if you work every waking hour, you probably aren't happy).