Public Enemies: Government Bureaucrats as Societal Parasites

In today’s interventionist economy, the Fed inflates away the dollar and congress and the presidency spend trillions on a whim. But according to Austrian economist Murray Rothbard, the modern bureaucracy– especially the civil service system– is arguably the greatest threat to American liberty.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

Economists have been studying and writing about government bureaucracy for quite a long time. Ludwig von Mises became the first “modern” economist to write a book on the subject with his 1944 Bureaucracy. The public choice school of economics, founded by James Buchanan and Gordon Tullock, among others, has produced a huge literature on the economics of bureaucracy, much of which is complementary to Mises’s pathbreaking work.

This literature has produced many easy-to-understand insights about the essence of governmental bureaucratic behavior. For one thing, it is vastly different from decision-making in the marketplace. In the market people voluntarily “vote” with their dollars to express their preferences. There is a market feedback mechanism whereby if one pleases his customers he prospers, if one displeases his customers he fails. In government, by contrast, we are basically told: You need this, this, this, this, and this, and if you do not pay for it, we will make you live like a dog in a cage for several years. That’s called being sentenced to prison for tax evasion. There is nothing voluntary about it.