Here’s an interesting post from Arnold Kling on EconLog.
In it, he discusses federalism and cartel federalism. Few people consciously view government in these terms, but should.
Federalism is the idea that governments compete for citizens, much like how companies compete for customers. When people are free to move, they tend to move to areas that offer governments they find more attractive.
As a small example, when I was ten years old, my parents moved seven miles to exit a poorly performing school district to a better school district.
Cartel federalism is when political elites, driven by similar motivations as business people, try to reduce competition between governments by colluding to offer similar types of government.
Bastiat reminds us to “treat all economic questions from the viewpoint of the consumer, for the interests of the consumer are the interests of the human race.”
For the same reason, we should treat all political questions from the viewpoint of the citizen.
When I studied engineering, they taught us to avoid designing systems that have a single point of failure. Why? Because things fail.
No matter how durable and reliable we believe something to be, we don’t possibly know enough to know with certainty it will not fail.
We forget that when it comes to governments. Enron failed and hurt a small portion of the economy. The Soviet Union failed and took down the whole economy. That’s a single point of failure.
Even with governments, it’s good to have choice and competition. Why? Because things fail.