The Price of Civilization

An anonymous reader commented on my report on Pamlico County Economic Development as follows: "Just remember that government grants are other peoples taxes and they represent the forced redistribution of wealth."

I do.

I also remember Justice Oliver Wendell Holmes, Jr.'s comment that "Taxes are the price we pay for civilization."

Contrary to popular opinion, wealth is not just an individual creation. It is also a creation of society. Those who would create wealth need social goods such as: roads, harbors, monetary system, collective defense, police, educated employees, banking, transportation, communications, protection for intellectual property, standard measurements, a level playing field (law and regulation), assistance in navigating through legal and regulatory requirements, and on and on. In short, they need the activities of government. These activities are funded through taxes. Tax collection is always coercive.

Our Revolutionary War forebears decried taxation without representation, not taxes in general. In fact, they had been governing themselves and collecting taxes for their own government activities for a century and a half before the Revolution.

There are those who believe the only proper functions of government are defense and public safety. The rest can be handled by the magic of the marketplace. Alexander Hamilton and George Washington (among others) knew better.

In the present case, the issue facing Pamlico County is whether modest support for a project to meet an important national military requirement, expand economic activity in the county and employ up to 1,000 of our citizens is a proper public purpose.

It is.