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CHAPTER 13

The Maker of Shortages


Whenever and however the State intervenes in the affairs of men, particularly their economic pursuits, a lessening of satisfactions ensues. The consequence of political intervention is on a par with that of a raid on the market place, say by a band of robbers: a depletion of the things men live by. We are talking of consequence, not of intent. The robber band makes no pretensions to character, while the State clothes its operations with a moral purpose, such as the promotion of the "general welfare"; but in both cases the sum total of consumable or capital goods is diminished. Society has less. Since the keystone of the social structure is man's everlasting struggle to avoid shortages and to achieve abundances, the shortage-producing consequence of the State's interventions stamp it as an antisocial institution. It must be classed with the robber band, and only its loud protestations of a moral purpose, which are generally believed because skepticism is likely to bring on discomfort, prevent its being so classed.

The first item on the agenda of the State is taxation, simply because the State could not exist without it. A tax is a compulsory exaction; it is not a voluntary payment for goods received or services rendered. In ancient times, before a regularized system obfuscated it, the nature of a tax was better

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