No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Fourteen: Decision-making in Democracy: Public Choice 325 occurred in 2011 in the “Arab Spring”). We don’t put on rose-colored glasses when we view the rest of the world and their motivations. We know that sinful people will often do many wicked things to pursue power; the historical record as well as Scripture is replete with such examples. Yet when we look at our own leaders, we don’t want to think they will do that; it is viewed as a great surprise when Illinois Gov. Blagojevich tries to sell President Obama’s former senate seat, or when members of Congress are found with thousands of dollars in their freezer or consider accepting bribes. These are believed to be the aberrations, not the rules. This elevated idea we have of our own leaders is not a biblical perspective; our leaders are just as fallen as any other nation’s leaders—no more, no less. Our leaders are just as capable of wickedness as any other power-seeking autocrat in history. Our founding fathers very clearly understood the fallen nature of man and designed institutional constraints (separation of powers) that mitigate the evil one man can do even if he does not fear God. If our leaders don’t have a healthy fear of God, they can only rely on their own moral strength to resist the fleshly temptations of power— strength that history suggests is sorely lacking. So we should expect fallen men acting on behalf of the public to act just like fallen men acting in a market setting—in their own self-interest. Acting in their own self-interest may even come at the expense of the public interest, if the two are in conflict. So we should expect fallen men acting on behalf of the public to act just like fallen men acting in a market setting—in their own self-interest. WHO PAYS THE TAX? MATTHEW 17:24-27 24 When they came to Capernaum, those who collected the two-drachma tax came to Peter and said, “Does your teacher not pay the two-drachma tax?” 25 He said, “Yes.” And when he came into the house, Jesus spoke to him first, saying, “What do you think, Simon? From whom do the kings of the earth collect customs or poll-tax, from their sons or from strangers?” 26 When Peter said, “From strangers,” Jesus said to him, “Then the sons are exempt. 27 ”However, so that we do not offend them, go to the sea and throw in a hook, and take the first fish that comes up; and when you open its mouth, you will find a shekel. Take that and give it to them for you and Me.” The history of government is often one of interest group alignment with leadership. For instance, it is very easy to see in modern American politics that union leadership very strongly supports the Democratic Party, and the National Rifle Association tends to support the Republican Party. In exchange for their support, the interest groups expect their groups to be relatively favored by government if those they support obtain power. This could include taxing others to fund projects that benefit all. While biblical justice requires justice be blind ( Leviticus 19:15) , the reality is that in a fallen world, it often is not. Hence Jesus’ comments about taxation can be extended once we understand that political leaders will act according to their self-interest: we do not expect them to tax their own “sons” or supporters, but rather they will tax others who are “strangers.” This is not a normative (what should be) assessment, but a positive (what is) assessment of the fallen world we live in.