Sunday, January 23, 2011

Government is subject to cost benefit analysis

Don Boudreaux believes government cannot be analyzed, we must assume government provides personal services to voters.  Hence his efficient government results in a flat tax per person, which is an assumption that government is analyzable by vote.

His theoretical norm emphasizes the free association of individuals.. His economic theory does admit of analysis of monopolies, the efficient emergence of natural monopolies.    That theory delivers the result that monopoly services are provided according to wealth.


Why would Austrians fail to apply efficient monopoly theory to the optimum organization of government?  They are fearful, fearful of results that might appear in a dysfunctional government and cause the wrong reaction, So the Austrian deliberately allocates more imprecision to government affairs than science requires.

No comments: