As most guides to successful business presentations and elevator pitches recommend you should be succinct and clear. My point is this: We are missing personal ethics in this day and age. There you have it!
We can safely say that in the last 70 plus years the size of government has increased tremendously in the developed world, and in the rest of the world also.
Just to use few data points, in the US the government budget in 1950 represented a little over 23% of the GDP, 27% in 1960, 29% in 1970, 32%in 1980, 34% in 1990 and is 36% in 2017. In 2016, Governments in the EU have budgets that represent 56% of GDP in France, 44% in Germany, 42% in UK and Spain. Between 1 in 3 dollars or 1 in 2 euros are appropriated by the government in such countries.
The government takes more and more of our money, this has three major impacts on our society:
- The first influence it has in our economy. Decisions on economic matters, should I work more hours or not? should I make this investment or not? Should I work for this company or for the other?, change depending on how much it costs you to make a profit, be it in monetary terms or otherwise.
- The vast amount of resources the government appropriates from individual citizens produces another problem, those resources have to be allocated (euphemism for “spend”). This represents the second influence on our economy, the government can pick winners and losers by awarding contracts to individual companies.
- There is a third influence of the government in the economy and that is the shaping of personal behavior. Even though this has nothing to do with immediate economic production it is the most relevant and dangerous epiphenomena of the interventionism a behemoth government has on its citizens.
How is it that changes behavior? The first decision government makes is where the vast resource it appropriates come from. More and more, due to a weak political class more interested in old class warfare than in telling citizens what good citizenship means, a smaller portion of the population pays the vast majority of taxes (which is the main source of government revenue). In 2012, the top 1 percent of the filers paid 37.8% of all income taxes, whereas the bottom 90 percent combined paid 30.2%. In 2015, it was estimated that 45.3% of American households paid no federal individual income tax.
You started talking about ethics and just vomited numbers for half a page! You are right, but I am building my argument, so bear with me!
We have a system where a great portion of our income, which comes for our work (sweat and tears), is appropriated by government (an amorphous entity, massively powerful and difficult to identify) and at the same time those resources are allocated by a logic that escapes general understanding of the public. But only a portion of the population contributes to such entity, and is getting smaller, whereas the vast majority benefits from “the system” (as I said before it is an amorphous entity). This set-up is the perfect recipe to milk the system. It is on the best interest of such political class (an interest group by itself) to have a massive government, that makes them the deciders, who wins and who loses. Such decisions are made based on a very nebulous set of principles that are summarized in “political correctness” and a vague idea of resource redistribution that inherently assumes the economic system is unfair. As a result of such unfairness the “wrongs” of the system have to be made “right”, and the government is the one to do it.
These ideas have led governments to appropriate more and more resources, as described before and have taken away the responsibility of their own lives to many individuals and layers of society. There is always some wrong a politician can find to make it right, and it is never an issue of individual personal responsibility. It is ”The system” which is to blame. By taking away personal responsibility and replacing it with a government action, there is a “de facto” outsourcing of morality. It is the government who based on some vague definition of morality (rights and wrongs without any specific moral logic) takes away the individual and most fundamental action of freedom, morality.
This principle is not only intellectually despicable, it is also morally corrupt. As J Dorn states “in a free society people are entitled to what they own, not to what others own”. It is interesting that this is a recurrent topic under different circumstances. In 1944, Hayek published “The road to serfdom” where he made the argument that there is a danger of tyranny that results from government control of economic decision-making through central planning. Nowadays, it is the size of government and the massive appropriation of resources that creates that risk of oppression, not the central planning. However, the results are the same an empowerment of the state over the individual.
References
https://www.usgovernmentspending.com/spending_chart_1950_2022USp_19s2li111mcn_F0t
https://taxfoundation.org/summary-latest-federal-income-tax-data-2015-update/
https://www.marketwatch.com/story/45-of-americans-pay-no-federal-income-tax-2016-02-24
Hayek, F A (1944) The road to Serfdom
EL Quijote, always a good read