Why Government Makes Things Worse

Picture this, you’re in your living room on a Saturday afternoon relaxing,  when all of the sudden a pipe in your basement breaks, and water is flooding your basement. What do you do? Do you call your best friend and say, “let’s meet up on Tuesday and fix this pipe”? No, that would only make things worse. Do you go to another pipe in your basement remove it and use it to replace the broken pipe? If you did you would have created another problem in trying to solve your current problem. I could go on and with possible ways that one could try and fix a problem, but make it worse. Let me just say this, the government works much the same way as this hypothetical situation. It identifies the problem, but all it’s solutions make things worse.

On the last episode of the show we discussed all the ways that government caused and made the 2007 financial crash worse. Internet rate manipulation, subsidies, the partial nationalization of Fannie Mae and Freddie Mac, and of course the flooding of markets with freshly printed money. All the government had to do was let market forces work. The people in the financial industry understand it better than the government. People are best left to help themselves in certain situations. In the absence of government communities work together to help each other. People tend to bond and work together when they have a common interest. Whether it be, rebuilding after a storm, or educating kids in the neighborhood. The alternative is for the state to step in and set up road blocks and put armed police or national guard troops in the way to prevent people who are voluntarily, and willing to risk personal safety to help the members of their community. If they don’t physically block them, they can with legislation. We can see an example of that scenario with the Louisiana floods last year.

More often than not voluntary citizens take better care of each other than the government does. Misallocation of resources, lack in planning, millions in unnecessary spending, these are not issues a voluntary community or group faces. We saw government do all those in both Batton Rouge and in 2007 crash. Are the people any better for it? You will find hardly a soul who will say that their life was better after government got involved. Systems put in place by the government often fail at every level. Why does government make things worse? It’s hard to pin down to one reason, it often varies case by case. Most commonly found are the following, they identify they problem, than intentionally do the opposite of what’s needed to correct it. They tend to throw money at a problem thinking that will fix it. Misallocation of resources such as money or aid or even the national guard. If government wants to help us, maybe it should start by asking whether they really need to be there, or if the local governments and citizens can tackle problems. V is for voluntary.

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