Topic 3: The State and its Origins


To analyse government policy, we must understand the role of the state, in which government and the rules directing it are created.

Imagine a primitive world in which people live by hunting down and eating wild animals and by growing food on plots of land selected and developed for the purpose. Being what they are, it is inevitable that some people will use the tools required to kill animals as a means of intimidating and exploiting others, laying claim to their land and other items they have acquired and built up. People can protect themselves by banding together to fight the oppressors who can increase their power by also banding together.

Given this uncertainty it is not surprising that a majority of the population would agree to establish an association within a given area to provide protection of individual property rights, which can be accomplished by creating a police force to ensure enforcement of laws established for the area. Since individuals differ, the formation of this state will necessarily infringe on individual freedom to live one's life without interference from others, since not everyone will agree on the state constitution and laws that arise therefrom. But individuals will agree to water down these freedoms by institution of majority rule rather than have them exerped by criminal behavior.

While majority rule would seem a reasonable compromise in the conduct of public policy, an alternative is also evident in many real-world situations. A collection of individuals within the state may band together and take control, providing protection for all property rights except those that people within this group can gain from violating. This group can maintain its control through the use of force and by ensuring that the majority of the community is free from crimminal behaviour on the part of individuals. People will put up with such a dictatorship if it maintains a degree of law and order that otherwise would not exist, although majority rule would still be their preferred system.

Even under a democratic system of government some benefits of majority rule are lost. It is too costly to have a vote on every minor issue of public policy to ensure that a majority agrees. Alternatively, groups within the community will create political parties one of which becomes charged with running the country in a manner that will receive overall majority support. Failure to maintain such support will result in the group being replaced by an alternative political party when the next vote occurs.

It is reasonable to expect that, if everyone in the society understands which regulations of a free-enterprise economy will increase national output, a majority vote for political parties will cause the one selected to engage in wealth-maximizing public policy from which a majority will benefit in each case, although agreed-upon redistributions of income may be required from time to time. Where the majority does not understand the effects of particular policies, however, tariffs being a good example, the party in power will gain from undertaking some policies that will benefit certain groups while having adverse effects on overall national wealth.

Our effort in the topics that follow is to analyse government policy in more detail. You should now be ready to take a test on your understanding of the above analysis. While detailed answers are available on-screen you should think about the questions and construct your own answers before accessing the ones provided.

Question 1
Question 2

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