Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Why Governments Can Do No Good

Politics / Social Issues Jul 18, 2013 - 12:48 PM GMT

By: Jeff_Berwick

Politics

Government cannot do any desirable thing better than the market. It's physically impossible for them to do so, like chewing on your own jawbone. By its very nature, government is designed to disregard actual wants. It pretends to listen while it simply imposes. It steals money to fund whatever “services” it claims to be providing. That theft makes the situation a monopoly based on the violence inherent in the threat of force (kidnapping, caging and possible murder) behind the collection of taxes.


What you end up getting is an inefficient and often harmful perversion of what you actually wanted. And you have to pay for them no matter what. That makes these “services” immune to market forces. You can't take your money elsewhere as you could in the free market when a provider isn't making you happy. With government, even if you opt for a private sector version of the government's “services”...you STILL have to pay for the government services you don't use. That's like having to pay Walmart even if you buy at Target.

It's this mechanism of funding-despite-dissatisfaction that keeps government behind the market in terms of the quality of the service it provides. But let the market in just a bit and it will almost immediately start to outperform the “service” of the violent monopoly. That's why government seeks to use its powers of violence to keep the private sector out as long as possible.

This was the case with early individualist anarchist Lysander Spooner. His private mail service, the American Letter Mail Company, managed to find commercial success in direct competition with the notoriously expensive violent monopoly of the US Postal Service. So of course the US government litigated his company to death.

Spooner got the posthumous last laugh. The Internet has turned the USPS into a comical anachronism while private companies like UPS, FedEx and others chip away at the remainder of the parcel market.

Some things, however, seem on the surface in such dire need of centralized, violent monopoly that even freedom-minded people are willing to leave them to the government. The main culprits here are courts, police, national defense and roads. Roads in particular are foremost in the minds of the statists when people like me argue that the laws of economics don't stop working in select places. “Who would build the roads they ask?”

“Who needs ****ing roads?” we reply.

Roads are a Stone Age atavism kept alive by the state. Much better solutions abound and would have been implemented long ago if the state hadn't been diverting precious resources from these free market solutions via taxation. The artificial availability of roads thanks to stolen funds (taxes) are what encourage the car-dependent automobile suburbs and exurban development that people have come to accept as the modern normal. The free market would have encouraged a very differently built environment suitable to a healthy mix of transportation systems. There would have likely been much denser development and a lot more fixed-path transit (rail).

And minus government theft, the billions of dollars that got diverted (by force) into highways and suburban road systems would have been available for something else. And that something would likely have been evacuated tubes.

The idea behind evacuated tubes is decades old. It's basically space travel here on Earth where air friction normally acts as a brake on speed. Eliminate ground friction with airplanes and magnetically levitated trains and you get speeds in the hundreds of miles per hour range. Eliminate air friction with a (near) vacuum along with ground friction and you can get speeds in the thousands of miles per hour range.

Evacuated tube systems could allow passenger or cargo cylinder cars to move up to 4,000 mph. A tube “backbone” could be built across continents and reduce travel time from New York to Beijing to just a couple of hours. One tube could handle the equivalent of an 80-lane highway per unit of time. And because the tubes would feature electromagnetic levitation, much less material would be required to build the infrastructure than with any rail system since there would be no need to support heavy rail cars. The initial construction costs would be high, but then such a system would be monstrously cheap to operate. In true free market fashion, quality, safety and speed would multiply while costs of use would plummet.

While California's government is spending millions of stolen dollars for old technology on a high-speed rail boondoggle, companies like ET3 and Tesla Motors are hard at work bringing the seemingly sci-fi of evacuated tube transport to life. In the very near future, we may be laughing at the primitive notion of plowing through the atmosphere in slow, bulky, accident-prone missiles ...or putting up with tens of thousands of highway fatalities per year on the expensive old world highway system.

Sadly, we aren't already at this point because of the tragic diversion created by the government. While myopic statists ask “who will build the roads?”, those of us who understand freedom, economics and progress ask, “where are our evacuated tubes...and flying cars and levitating pods?” We weep at the thought of the billions upon billions of dollars that were stolen to keep us in the Stone Age.

Governments suck at everything. At least everything worthwhile. Theft, pandering, intimidation, spying, kidnapping, brutality, mass murder and mass destruction...those things governments have down pat. In these realms they can't be beat. But when it comes to things people actually want...well, like I said before, it's hard for people to get what they want when they can't withdraw their consent by withholding funds. The good news, however, is that the forced funding of collectivist socialist/fascist/communist systems always leads toward collapse.

The Western World is leading the way in collapse right now, especially the USSA. Meanwhile in Chile the highways – old tech that they are – are privatized and glorious. The Chilean government manages to be just under 30% or so of GDP, too. Chile is as free market as you can be in this world of scabby nation-states, which is why things are booming there in a decidedly sustainable, non-bubbly manner. It's also a large part of the reason Chile was chosen to host Galt's Gulch.

Latin America as a whole is just a much better bet right now. It may be hard for some to recognize now, but the West is in terminal decline while Latin America is on the rise. Galt's Gulche, Chile is one fantastic way to get in on the ground floor while the getting is scandalously good.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2013 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules