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Liberty in Context
The Federalists were dead wrong and the Anti-Federalists were right in all their predictions about how the new Constitutional government would act. So why do we still hold them in such adulation as master architects of fault-proof government? Why does nobody remember their correct opponents?
Your post is why I consider myself a philosophical anarchist. I would love to have a government to which I could in good conscience consent. But I know of no political institutional arrangements that have not led to plunder or otherwise morally illegitimate acts of state. On the other hand, governments can be pretty handy--not for economic reasons like roads or defense, which are better left to markets, but as focal points for organizing public interaction in beneficial ways. I don't expect perfection from markets, so I do support even imperfect governments if they have mechanisms for enforcing things like anti-corruption norms. A government that prosecutes corrupt government officials is better than one that doesn't. Our big problem is that fewer and fewer people give a crap about principle and want to outsource responsibility to the state.
Anarchy, please!
My point was that in the current climate, under the current institutional arrangements, complaining about politicians selling their power for cash while others bailout those who will do them the most electoral good seems to me to require some level of cognitive dissonance.
Pardon me for stating the obvious but somewhere between advocating anarchy and submitting oneself to the will of politicians we trusted one day, but then woke up the next to find they had power, doesn't there lie the concept of checks and balances, gridlock, etc. The efficacy of power conflict, wherein the actors butt up against each other and properly cancel each other out, has been sufficiently weakened and power among our legislators has increased - but is that not the proper hedge against what many of us believe to be the ultimate vice in government. Rather than better government would it not be more useful, if we are to pine for something unachievable, to hope for a more effectual utilization of political gridlock, checks and balances, and the like?
I think Munger overstates the case a bit, and does come across as denying that government can ever be made to work better or worse. But surely you'll agree that making government work well is a lot harder than most non-libertarians acknowledge, and that incidents like this one serve as a useful reality check for those who romanticize the workings of government and the public-spiritedness of public servants.
But if you say "we need better politicians", then I disagree.
The problem is that better government can only be gotten via better politicians.....
So when faced with this conundrum we can go two ways: either we romanticize the political process and raise it above any particular goal that may be pursued (democratic fundamentalism), or we cynically slam the political process at every turn and hope that more light will shine on our beautiful ideals.
I agree that the goal is better government and better politicians. The question is how do we get there? Assuming that only politicians can reform the current system, we are forced to start by picking better politicians. Yet I don't have much faith in that approach. I think politicians are hopeless. Maybe a better approach would be to reclaim the lost checks-and-balances from outside the system, by reinforcing civil-society, private agreements, the judiciary etc...as much as possible. It's not as glamorous but I don't see other ways.
Norms of honesty and caring make transactions easier and less costly, but they are limited in what they can do. It's hopelessly idealistic to design a system that makes corruption reward-maximizing while thinking that you can just instill an anti-corruption norm that will neutralize this effect. In setting up a government, as with any corporation, we need to take the amount of corruption in society as given, and figure out how to design a system that doesn't reward that corruption.
I'm not an anarchist in that I don't really care one way or the other whether we have some entity called "government," but I don't believe we can claim that once we have something called "government," the normal rules of economics no longer apply.
Do we know they are below average? The big question seems to be how much of it is institutional, and how much chalked up to "bad people." I'd bet heavily on the former, since I believe in environmental factors and incentives as a primary cause of human good and bad deeds.
http://tinyurl.com/6k4476
What do you mean by better government?
Do you want, as Tim suggests: "Obviously, given that the government is going to perform a certain task, we should prefer that it do so more rather than less effectively." ?
Do you want government to be more effective at enforcing victimless crime laws, tax collection, ridiculous regulations, immigration laws, etc?
If not, then what does "better" government mean to you, and how does that differ from what Horwitz and Munger want?
Next time, I want a better thief who doesn't make such a mess.
:-)
Whenever there is a desire for "better" goods and services, do you typically expect the best approach to be the support of a monopoly on these goods and services?
Reagan was absolutely, fundamentally wrong: government is not the problem. Bad government is the problem.
A certain amount of government (and associated redistributive policies) is necessary for a modern, prosperous, high-productivity economy to operate. (The only way to maintain aggregate demand and avoid meltdowns.) All evidence suggests that the proper amount requires taxes in the 30-40% of GDP range--slightly to significantly north of the U.S. at 28%.
For a century we've teetered at the bottom edge of that workable amount. We fell off the edge catastrophically once before, and now we've done it again. In both cases we crashed everybody else, too--even those with responsible levels of government who would have gone along fine except for our irresponsibility.
It's time for libertarians and conservatives to put aside childish things and magical thinking, and contribute creatively within the context of what is actually workable, reasonable, and prosperity-generating in a modern political economy.