Saturday, May 03, 2014

Historically, government’s primary function has been to exploit the industrious


Historically, government’s primary function has been to exploit the industrious

Historically, government’s primary function has been to exploit the industrious–anyone who works and trades in the market–for the sake of the political class, which prefers collecting subsidies to earning wages or profits.   ….   The privileges take the form of tariffs, licenses, monopolies, land grants, [patents], and other subsidies. These enable favored interests to increase their incomes beyond what the market would provide, either by forcibly extracting wealth from producers or by barring them from competitively serving consumers. The name for this privilege-based system is mercantilism, and in many ways it lives on today even in market-oriented economies, which is why they are often called mixed economies.