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Andrews Labor victory means challenges and opportunities for change : Comments
By Tristan Ewins, published 1/12/2014Arguably no state government in the country has secured the revenue necessary to sustain government provision of public infrastructure over the long term.
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What if you're wrong? Have you even considered the possibility? If you are wrong, then you're assuming what is in issue, aren't you? Assuming that government has the ability to economise when the ASSUMPTION was never justified in the first place.
As we have just seen, when called upon to justify the assumption, you can't do it.
If you had thought about it, you would see straight away that there are two *categorical* differences:
1. market actors obtain their revenue by consensual means, government by coercion; thus self-evidently refuting your naked assumption that payment reflects any kind of equivalent demand for any government service, rather than what the payer would have preferred to spend the money on, if it wasn't confiscated;
2. market actors are able to economise by reference to profit and loss, but the whole purpose of having governmental decision-making is so that the relevant decisions will *not* be made on the basis of profit and loss, otherwise there'd be no need for government intervention, would there?
Both of these categorically affect values and valuation, and invalidate your assumption.
If I am right, this has explaining power:
1. it explains how you are incapable of coming up with any rational criterion to distinguish wasteful governmental behaviour from that which confers a net benefit on society
2. it explains how when you try to come up with one, you have to try do it by reference to market methods
3. it explains how and why government can never reconcile those market methods with its own purposes of economising because it has to start, as you did, with rejecting market-driven valuations as the basis for decision-making
4. it explains that, short of recourse to such market methodologies, the only methodologies available to government involve comparison of mere physical quantities for all different production possibilities = economic incoherence.
But if you are right, how come you can't come up with any rational criterion to justify your assumption?