The state as a brake on development

Can the state "produce wealth"? To answer this question, we must first ask ourselves the question: "where does the state get money for the functioning of its apparatus?"

Subsidy
Subsidy

However, the answer is simple: the state finances itself by taking money from us through taxes. So the state works thanks our money. He takes some money from us, pays officials, police officers and others, and we then "draw on the services" that the state gives us through these people.

Many people, "economists" and politicians say that the state should put as much money as possible into our money to make us all richer. They claim that they give us money, we then spend it, thanks to which they earn producers who pay their employees better… and so on. And so that the state "produces" wealth. [1]

However, this is only "A". When we say "A", we have to say "B" - that is, if the state wants to put money in our pockets, where will it take the money?

Yes, it will be in our pockets again. We pay taxes, as we said above. We pay for each service - either today or in the future, if the state pays its expenses through debt. Thus, the state does not produce wealth, but redistributes it as much as possible - in one place it takes money to give it to another.

Yes, I manipulate with my money for myselfYes, I manipulate with foreign money for themselves
Yes, I manipulate with my money for a strangerYes, I manipulate with foreign money for foreigners

Look at the table. If you decide on money for yourself, you will always make the decisions to enjoy them as much as possible. It's about you!

However, if you decide on foreign money for strangers you don't know, you don't really care what happens to the money. It's not about your money, you won't be affected by the decision, but it's not about your money either, you can't get rich.

In fact, every civil servant is in such a position. Government officials don't care where your money goes. A government official can never make a better decision about your money than you. A government official will never tell you that can't enrich on the contrary - a government official will deprive us of your money their wasteful expenditure. For example, by paying for a bike path, 1 kilometer of which cost as much as 1 kilometer of a first-class road. [2]

The more funds we entrust to the state, the worse they will be treated. Like money, the state will handle "control of private enterprise", investments and other activities. A particular civil servant is never interested in making a profit. He doesn't care how state activities turn out.

The state is not the one who creates wealth. The state does not even "usually" redistribute it. The state is the one who deprives us of our wealth, the one who hinders development. It does not allow us to put our resources where we want and forces us to drown them where no one would ever put them.

If you still doubt that the state is the brake on development, we can look at a few practical examples.

We don't have to go far - just go to Germany. It was divided into East and West after World War II. There was socialist rule in the east and a market system in the west. After unification, it was the "western" Germany that had to invest in the east to bring the eastern part of the country at least closer to the level of the west.

Next, let's take a look at, for example Korea, culturally identical two countries - North and South Korea. While in the 50s, 60s and 70s, North Korea was better than South Korea thanks to subsidies from the USSR and China, in 1975 there was a turning point and South Korea surpassed North. Today, the difference between these countries is striking, North Korea has fallen to the level of 1962, South Korea is one of the fastest growing countries in the world.

The amount of GDP per capita in 2009 is telling - South Korea: 23 875 dollars. North Korea: 1 582 dollars.

Fifteen times lower product per capita - this is the result of state proceedings.


[1] As Bohuslav Sobotka writes, for example, at http://www.cssd.cz/inews/nazory-a-komentare/chystane-rozpoctove-skrty-poskodi-ekonomiku

[2] See the cycle path in Prague Vysočany - http://www.reflex.cz/clanek/stary-reflex-tema-reflexu-top-tema/36084/nejdrazsi-cyklostezka-sveta.html

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