I wrote just yesterday about new evidence showing that decentralized government is more efficient.
Part of the reason is because local governments are easier for voters to monitor and more likely to reflect the actual preferences of residents.
Another reason is tax competition. It’s relatively easy to “vote with your feet” by moving from one community to another, and this makes it difficult for interest groups and politicians to impose excessive tax burdens.
Now we have some serendipity.
I’m in Gdansk, Poland, for a Liberty Fund seminar on “Economic Growth, Entrepreneurship, and the Future of the Welfare State.”
Two of the readings, by great scholars from the Austrian school of economics, had passages about the importance of decentralization.
In 1960, here’s some of what Friedrich Hayek wrote in his classic, The Constitution of Liberty.
While it has always been characteristic of those favoring an increase in governmental powers to…
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