On the questions of government action and responsibility which often arise, herewith Judith Sloan (a good economist) in the Weekend Australian:
“In what was an important speech delivered at the Press Club at the end of January, Tony Abbott favourably quoted Abraham Lincoln – “government should do for people what they can’t do for themselves and no more”.
This proposition is a very good starting point for any government, because to do more is to undermine the self-reliance of individuals and families, to undercut the rewards from work and to crowd out business activity.
In practice, however, there are different views on what people can’t do for themselves. Lincoln helpfully listed what he thought people can’t do for themselves – roads, bridges, police, law-enforcement, providing for “the helpless” and schools are the items on his list. It is a view of limited government in which the provision of true public goods is its dominant role.
Fast forward a century and a half, the prevailing view of the role of governments is that there are very many areas in which people cannot look after themselves, or only with significant government assistance. And a confected depiction of market failure has led to calls on the public purse and regulatory favouritism which are nothing more than unjustified hand-outs to noisy rent-seekers in particular industries.”
Well said to another Judith.