The Growth of Government

Gary North reports:

Government only grows. Budgets only grow. This guarantees the eventual breakdown of government. When tax resources cannot be expanded because government policies have reduced economic growth and therefore the tax base, the government can no longer fulfill its economic promises. This usually occurs very rapidly – "without warning" for those who believe in salvation by legislation, which includes almost everyone. Those who have become dependent on welfare payments find that the government increasingly allocates scarce resources by (1) forcing people to line up or (2) making payoffs to officials. This was the two-fold solution in every Communist paradise.

When this happens, paralysis appears at the top. This creates opportunities further down the chain of command. This is the logic of secession by standing still. The local governments do not formally secede. They just cease cooperating with the national government.

The law of diminishing returns applies to everything.