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Tuesday, December 17, 2024

GARY EMINETH: THE INVISIBLE FOOT OF GOVERNMENT

Adam Smith uses the term “invisible hand” to describe how free markets motivate individuals or companies acting in their own self-interest or in that of their shareholders to produce what the market wants. Usually this is the best outcome capitalism has to offer.

 

Former North Dakotan and Congressional Majority Leader Dick Armey writes, “On the right side, there is the invisible hand of the market and the invisible foot of the government.

 

The market is an arena of voluntary bilateral transactions where everybody is free to choose. It makes sense that no one would voluntarily trade something he has for something else unless he thought he was better off for the transaction.” 

 

As the legislature begins the 69th session, I would challenge legislators to pass bills through a grid with the question, “Is this the best outcome for the citizens I was elected to represent in the long term?” in the forefront of their minds. 

 

As any legislator will tell you it is easier when there is NO money, because the answer is an easy NO.

 

But since the state is flush with cash and there are big balances in all the accounts it will more difficult to just say NO. It will be tempting to give in and spend like liberals.

 

Who doesn’t want to be everybody’s friend (defined as the "I’ll-vote-for-your-bill-if-you-vote-for-mine" legislation).

 

Where does that leave the best outcome? 

 

As I mentioned earlier Dick Armey in reference to this also speaks of the “invisible foot of the government”.

 

In a free-market economy, most programs are meant to be voluntary, giving the individual the final say. As it is now, someone in an agency or bureaucracy uses the power of the state to force someone to participate in a government program whether they like it or not. This is typical of the federal Government distributing money to states to force an outcome of their liking.

 

All government programs take from somebody and give to another. The questions legislators must ask of themselves is, is this in the interest of individual freedom? While many programs might start out with the right intention, it shifts to, “Will this get me votes, and will this enhance my power?"

 

Armey writes, “It has become in political considerations to judge government programs by their alleged intentions rather than their real outcomes."

 

Real growth will not come by redistribution and excessive state intervention but through real economic freedom. Financial freedom always comes before personal and political freedom. 

 

The DOGE effort being brought forth by Musk and Ramaswamy under Trump’s direction could be the biggest market driver for the next decade or two. It is my hope that North Dakota legislators keep an eye on what they are proposing and ask themselves, “Has North Dakota moved in the same direction as the federal government?"

 

North Dakota in 10 years has expanded their full-time employees from 11,000 to over 16,000. A small example of government in North Dakota moving in the wrong direction.

 

Government that governs least governs best. 

 

Maybe it’s time for NDOGE!



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