Mr. Robert Murphy of the Library of Economics and Liberty has some interesting ideas about how to create wealth by tinkering with a few American icons. While admittedly resorting to ballpark estimates at times, he suggests that income for citizens could be increased by about 18% across the board. An interesting conclusion he reaches states that government at the state and federal level tends to spend about 50% more in resources to accomplish the same task as the private sector.
An example of government inefficiency in action is spending on K-12 schooling in Washington DC. Public schools in that city, the ones subsidized by Big Brother, spend an average annual amount of $24,606 per pupil. In contrast, private schools in Washington DC spend $14,534. Throw in the fact that private schools consistently outperform public schools on standardized tests and a thinking American has to wonder why we keep throwing more money at an institution that generates poorer results? But even if we were to ignore reality and assume that public and private school graduates head out into the world with the same educational foundation, the government is still spending 70% more taxpayer money for the privilege.
Next up is the military. The age old problem of whether or not we should try to police force the rest of the world is not the issue as much as is how long can we afford to do it? Current military spending proceeds at a yearly rate of $720 billion but how is it that after spending unconscionable amounts of money to develop intelligence networks, create allies, and maintain military bases around the world for decades, 19 men with boxcutters brought down the World Trade Center and launched an attack on the Pentagon itself? Money well spent? Perhaps not. Murphy suggests, and Patrick Buchanan would almost certainly second the motion, that we close up shop around the world and build an impenetrable fortress around America at a cost of around $150 billion dollars. Hmm…slash the military budget by $570 billion dollars AND possibly gain more security?
Are top levels of government destined to become more wasteful? From where we’re sitting it certainly appears that way. One theory is that the higher you progress in governmental jurisdictions, the more attuned to special interests and less responsive to the citizenry the politicians become.
Tea Party anyone?
The Creating Wealth Show
