Albers009 on Nostr: This conceptual graph attempts to illustrate a point that seems to be a blind spot ...
This conceptual graph attempts to illustrate a point that seems to be a blind spot for many, not exclusively on the left.
The point is; the less a government interferes with an economy, the more purchasing power its constituents gain.
Why? Government has monopolies on violence, law making and money creation, with which it can impose taxation, legislation and inflation on its residents. It is therefore quite good at taking wealth.
What these interventions also do is suppress competition, which diminishes incentives for efficiency and innovation. Less goods and services produced (or more currency produced, for that matter) means less purchasing power per currency unit. That is why government is not good at creating wealth in the first place.
In societies with minimal government interference, productivity thrives, benefiting even those with limited purchasing power. Moreover, abolishing the monopoly on money creation mitigates wealth disparities caused by the Cantillon effect.
So please keep this in mind when you're a proponent of big government. It's pretty antisocial for everyone, except for the government.
The point is; the less a government interferes with an economy, the more purchasing power its constituents gain.
Why? Government has monopolies on violence, law making and money creation, with which it can impose taxation, legislation and inflation on its residents. It is therefore quite good at taking wealth.
What these interventions also do is suppress competition, which diminishes incentives for efficiency and innovation. Less goods and services produced (or more currency produced, for that matter) means less purchasing power per currency unit. That is why government is not good at creating wealth in the first place.
In societies with minimal government interference, productivity thrives, benefiting even those with limited purchasing power. Moreover, abolishing the monopoly on money creation mitigates wealth disparities caused by the Cantillon effect.
So please keep this in mind when you're a proponent of big government. It's pretty antisocial for everyone, except for the government.