From Matt Yglesias:
This is how the political right operates—there’s a lot of rhetoric about free markets, and a lot of institutions that are staffed by people who very sincerely believe in free markets, but no real organized political movement on behalf of free markets except insofar as market-talk bolsters Republican Party electoral fortunes or rich people’s desire to pay lower taxes.
I think most fifteen-year-olds who read Ayn Rand really believe in the market based economy, they also think they are going to be the next John Galt, but for most everyone else it is just an excuse not to pay taxes.
I think most reasonable folks would agree that there is a level of taxation that is too little, and another level that is too much.
Do you think we are taxing too little? I think we are taxing too much.
Markets fail, but government fails more these days.
In comparison to most industrialized countries the U.S has a pretty low income tax rates, although I know you live in the east where property taxes are considerably higher. I just paid my property taxes for the year, $462. I have a feeling you might be paying more there.
I think it might also come down to how much you use your government services, for example I live in a city with a pretty high sales tax, around eight-percent on non grocery items, but I use the libraries and the parks quite a bit, plus I am starting to use public transportation more since Denver got light-rail up and running. In addition I still occassionally tend bar and the light rail brings in many people from the southern burbs and not only do they drink a lot they usually tip well; so for me that is win/win.
Other than abstinence only education I don’t see my tax dollars being wasted too much so I really don’t mind high taxes.
The other thing about our “market based” economy is I kind of wonder how many true markets we have in the U.S. Mostly we have a few large players that set the market.
So you are ok with subsidies to the Post Office, Amtrak, public transit, school administrators (not teachers) and big agriculture (corn, sugar …)? The latter which passes on double the costs the rest of the world pays while increasing obesity and its negative health effects?
Sorry, I think that is the very definition of ‘waste’.
I am not a big fan of corn subsidies and the post office I think is going to have to change a bit, but I think it makes sense to subsidize behaviors that have benefits that may go beyond their ability to make money. The main purpose of the U.S mail at this point is to deliver stuff to really out of the way places that it would not be profitable for fed-ex or ups to deliver too. and I can live with that, plus if you did away with the post office who would hire all thise ex milatary guys that drive around listening to Rush Limbaugh.
I agree that subsidies are a useful too, but they do create undesired externalities (which means that they are wasteful of tax revenues).
I bet (with a few exceptions that prove the rule) you buy private because you want to, and you pay the government because you have to.
When I lived in the burbs I had to pay for trash removal. now that I live in the city I get dumpsters in the alley. I would never go back to private trash service.
Obviously there are things the market does well but when it comes to large scale public services the government seems to do a better job.