Guest Post: Why You Should Be Excited About National Bankruptcy
by Simon Black
One of the great absurdities of our modern financial system is that a nation living within its means, i.e. spending less than what it confiscates in tax revenue, is no longer the norm.
Living within your means is now considered ‘austerity’. And unfair.
Whether in the UK, Europe, or North America, many voters have become so accustomed to the government’s massive role in the economy, they can’t begin to imagine how it could be scaled back.
You usually hear heavy objections from people like– “What about roads? If we start cutting budgets, there would be no more roads!”
In fact, the 2 1/2 hour ride from Santiago to our farm is along one of these roads, and it’s smooth sailing the whole way.
A few years ago when Chile had its major earthquake, portions of the highway system were damaged. This meant that the operators were missing out on toll revenue… so they found a solution and were back up and running in a matter of days.
It was amazing how fast they were able to pull it off when so much of their profit was at stake.
When you think about it, just about everything that government provides either is already, or could be, provided by the private sector. That there is presently a private vessel docked at the International Space Station in Low Earth Orbit is the finest testament to this concept.
SpaceX has twice succeeded in launching a vessel into space in its 10-year history with a total of just $1 billion in funding, averaging to $100 million each year… roughly 5.6% of NASA’s massive budget.
Then there are things like the court system… where the wheels of injustice grind away at such a pedestrian pace that it can take years for a case to even be heard, let alone resolved.
Enter 21st century technology: there’s a relatively new service called Judge.Me, an online arbitration service whose decisions are legally binding in 146 countries, from Afghanistan to Zimbabwe… and yes, including the US, Canada, and Western Europe.
The ‘road argument’ is one of the most widely misused defenses of government… as if there are no private roads in the world.
Chile comes to mind as a great example– the country’s very modern toll-based highway system is privatized, and the operators have a huge profit incentive to keep the roads in top condition.