The Weakness of Government

Here’s JPMorgan Chase’s CEO Jamie Dimon on raising taxes on the wealthy in particular: Opens a New Window.

I believe that individuals earning the most can afford to pay more, and I have no problem paying higher taxes to address some of the fundamental challenges and inequities in our society[.]

I’ll leave aside the illogic of Dimon’s implied obligation resultant from mere affordabity.  What are Dimon’s fundamental challenges and inequities that want government intervention?

ensur[ing] that tax dollars are being put to the “most effective” use, like expanding the earned income tax credit, alongside other programs that support the people and communities who need it the most.

Others, though, might argue that earned income tax credits are just social engineering (and disagree over whether social engineering is itself good or bad), or that credits should be applied to a different purpose; others’ views of who has the greatest need might be different; others’ definitions of need might be different; and on and on.

Even well intended men and women in government have differing goals and views of what ought to be done in the name of government, and these often are diametrically opposed.  It’s especially the case that the employers of those men and women, their constituents, have differing, even opposing, goals and imperatives.  That demands compromise in governing, and if compromise isn’t achieved, tax dollars are not used effectively at all, much less most effectively.

When compromise is achieved, the result is that not even the most correct, the most righteous, ends are achieved with anything close to efficiency.  This may actually be worse, fiscally, since the money would be misallocated and irrevocably consumed rather than held against a useful future expenditure.

In the end, Government cannot put our money to the “most effective” use, only to the uses of compromise, and this violates Dimon’s underlying criterion.

The best we can do is limit Government inefficiency by limiting Government.  The most effective way we can do that is by limiting the amount of money we allow Government to have.  And even here we can only compromise: what is the minimum amount, how much money does Government really need?  For what purposes?

Foreign Meddling

More European nations have recognized the Guaidó government as the legitimate government of Venezuela following the passing of those nations’ Sunday deadline for Maduro to schedule free elections with no action by Maduro (though left unaddressed is the conundrum of how Maduro could schedule anything if he’s not the legitimate head of government).

Russia’s President Vladimir Putin demurs.

…domestic issues should be solved by Venezuela and its people. “Attempts to legitimize usurped power” constitute[] “interference in Venezuela’s internal affairs….”

Two things make Putin’s position risibly hypocritical.  One is the idea that calling the Guaidó administration a usurped power is itself a blatant interference in Venezuela’s internal affairs.  The Venezuelan legislature—the legitimately elected one, not Maduro’s puppet show—constitutionally asserted its authority and with that authority swore in Juan Guaidó as interim President, pending free elections of a new President and legislature.

Take careful note of that: the legislature swore in a temporary President, not a President-for-life as Maduro’s henchmen have done.

The other thing is the right and duty of a people—acknowledged in so many words in our Declaration of Independence, but entirely applicable to all peoples—when faced with a Government embarked on a long train of abuses and usurpation [that] evinces a design to reduce them under absolute Despotism…to throw off such Government, and to provide new Guards for their future security.

Again, contra Putin, the Venezuelan people are exercising their right and duty to solve Venezuela’s problem.

It is the right and duty of all other free nations to support the Venezuelan people’s effort.  It is the right and duty of all other free nations to block despotic nations from interfering with these people’s quest for freedom.

Full stop.