New Discourses Big Government Can't Produce Abundance
Nov 19, 2025
Governments can struggle to produce true abundance and prosperity due to misaligned incentives. Host James Lindsay explores why both left and right want to expand government power, but often overlook the pitfalls. He delves into historical examples of state production failures, like communism and fascism, and critiques China's command economy for its trade-offs. The conversation highlights how profit motives drive innovation and solutions, while government’s reliance on others' money impedes efficiency and scalability.
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Government Incentives Undermine Prosperity
- James Lindsay argues government has the wrong incentives to create abundance and prosperity.
- He claims incentive structures, not just partisan takeover risk, explain why big government fails economically.
Totalitarian Regimes' Temporary Productivity
- Lindsay cites communist and fascist regimes as historical examples of state-led production.
- He notes they temporarily unleashed productive forces but eventually failed due to incentive problems.
State-Led Growth Carries Hidden Costs
- Lindsay examines China's hybrid command economy as a case where state control yields production but at great cost.
- He contends such systems rely on plunder and coercion, which aren't sustainable sources of prosperity.