1. Role of Government in a Free Society

2. Question Slide 1 1.What role should government play in a free society? 2.What should be the measure of whether it is legitimate or not for the government to act?

3. Government plays a role There is a common misconception that if you favor a free market economy, then you must believe in anarchism (belief in no government). There are roles that the government must fill, but those roles must be limited in the free market system.

4. Limited government In an ideal world, all decisions made by government would be by unanimous consent. Where unanimity exists, you don’t need conformity. An economy without a market system requires and enforces conformity when action occurs through political means (Churchill and BBC). Even in a direct democracy, there is more conformity required than in a free market because there are a wide range of different ideologies that will never agree with each other, but each group must conform to whatever law is passed.

5. Limited Government The role of the market is to facilitate unanimity without conformity. This provides for proportional representation in the market that is not possible politically. Capitalism provides for proportional representation in the market that is not possible politically. Goes back to the paint color example. There is no law dictating that all vehicles must be painted red, but instead people are able to buy whichever color they prefer.

6. Limited Government There are some areas where we as a society do have to come together to make decisions, where conformity becomes necessary. Any time a decision can be made by individuals rather than government, it should be determined by the individual. – Diversity and stability

7. Majority Rule Obviously, we do not live in an ideal world, so in our country, most things are decided by majority rule because it is impossible to have unanimity in everything we do. There are certain things that we do not, as a society, leave up to a vote or majority rule (absent a constitutional amendment for example). – Freedom of speech, freedom of religion, right to assemble, right to bear arms, right against unlawful search and seizure, etc…

8. Gov as Umpire and Rule-Maker Good society requires citizens to set rules through government on how individuals will interact with each other. Provide means on how to modify rules Use the meaning of the rules to settle disagreements Enforce the rules

9. Gov as Umpire Voluntary exchange requires following the legitimate rules put in place by government – Prevention of one individual coercing another – Enforcements of contracts in which two or more parties were willingly engaged. – Definition and meaning of property rights – Interpretation and enforcement of property rights – Monetary framework

10. Monopoly Monopolies are not ideal in a free society because it means a lack of competition. Exchange is only voluntary if there is a choice. Sometimes monopolies occur after the market has played out. They are tolerable in a very limited number of certain circumstances as long as no law prevents another from starting an enterprise to challenge the monopoly.

11. Examples Lubbock Power and Light City of Reno Water Department U.S. Post Office- there have been laws in the past that forbid a rival mail carrier. The trick is ensuring government stays back and allows competition should it rise when monopolies are present.

12. Government as Parent Not all members of society are able to take care of themselves and can exercise freedom, unless they are responsible individuals. Paternalism is necessary for those who are not responsible individuals. Children and the insane are not responsible individuals in society that can enjoy freedom.

13. Government as Parent The insane are not permitted freedom because they could infringe on another individuals freedom, but at the same time are allowed by society to live. Charities would not provide all the insane would need to live, so we leave it up to government to make sure they are taken care of.

14. Questions In what ways is the individual the basic unit of society? In what ways is the family the basic unit of society? Why are parents in charge of their children?

15. Government as Parent Essential unit in society is the family, not the individual. Parents are generally best at raising and protecting their own children as they become responsible individuals themselves. Parents do not have the right to do whatever they want with their children because they have rights too as potential responsible individuals.

16. Illegitimate roles of the Government 1.Price support programs for agriculture 2.Tariffs on imports or restrictions on exports (oil quotas, sugar quotas, etc…) 3.Gov control of output 4.Rent control or general price and wage controls 5.Legal minimum wage rates 6.Detailed regulations of industries 7.Control of radio and tv by Federal communications Commission (1 st amendment issue) 8.Social security programs 9.Licensure that restricts particular enterprises or professions to people who have a license 10.Public housing 11.National parks 12.Publicly owned toll roads 13.Conscription of men into the army during peace time.