07Mar 2020

Financing the Government

Posted in Capitalism, Economics
     Pure, laissez-faire capitalism means all human interaction must be consensual.  And taxation is not consensual.  And we can’t have anarchy.  We must have a government to maintain law and order which means we must have a police force to protect us from criminals, law courts to settle disputes and an armed forces to protect us from foreign aggression.  A government limited to these proper functions would be miniscule by comparison to today’s government, but it would still have to be financed – financed voluntarily – and it can be done.
     Businessman will sponsor a hockey team because it can be in their own self-interest.  It’s advertising.  Suppose a company such as McDonald's committed to sponsor the government with a donation of a certain percentage of sales on a monthly basis.  McDonald's would use this in their advertising campaigns which would incentivize other companies to do the same.  There is probably many ways to voluntarily finance a limited government.  In fact, I think such a government would get more money than it needs and would cut us all a nice little cheque at the end of every year.


Christopher Smith If that is true, why is there no country in the world that operates such a state?
Capitalism For Canada  Because there is no country in the world where the dominant moral code is based on an individual’s long range rational self-interest.  It is said that we get the government we deserve.  Our moral code is a mixture of rational self-interest and altruism (we are our brother’s keeper).  A mixed moral code results in a mixed economy – a mixture of a free market and government ownership and controls.

Bran Kern You consent to taxes by being in a society that has a  taxation system.
Capitalism For Canada  I don’t consent to shoplifting because I live in a society where shoplifters exist.  I don’t consent to murder because I live in a society where murders exist.  And I don’t consent to taxation because I live in a society where taxation exists.  To say I do because I live here is ludicrous.

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