” Experiencing Success One Good Idea at a Time”
Please re-read this message as often as necessary to get it from your head to your heart. Then you will be able to recognize the total nonsense you are experiencing when a politician says he wants to help the poor, create jobs, educate your children, or provide opportunities. Once you understand these kinds of things are impossible for the public sector to create, you are much less likely to be fooled by political rhetoric.
What you Probably Haven’t and Wouldn’t be Taught about Wealth—and Should Be
Dr. Sherwood Kaip
What about the public sector? The principle on which the public sector operates is simply: “Obey what I say or I will do something bad to you.” Laws are not passed to be optional. The public sector is a totally different institution than the private sector, and because of its nature and operating mode cannot satisfactorily substitute for the voluntary, mutually beneficial activities of the private sector.
It should be obvious that the public sector is not a good way to produce wealth. If the government does you a ‘favor’ and it doesn’t charge you for that ‘favor,’ then it has to get the ‘favor’ it gave you from someone else. This is by compulsion since that’s how the public sector operates (usually through taxes or, possibly worse, borrowing or printing money or credit).
What can the public sector do that is useful to the individuals of the community? It can use force and/or threat of force to punish and discourage some people from using force or fraud on other people. It can provide those few needed services which cannot feasibly be provided in the private sector.
Simply keep in mind that government is the billy club and the gun. It has its useful purposes but it in no way resembles the private sector where people interact voluntarily for their mutual benefit.
An important consideration is to keep the government from taking the fruits of the labor of some to give to others. In the private sector, this is called theft!! Another is to not interfere unnecessarily with people (private sector) interacting voluntarily for their mutual benefit (over-regulation).
The great political problem is: not differentiating what people should do from what they should be forced to do. The government should only be dealing with the latter.