Wednesday, May 22, 2013

The Roads to Accountability

      Last time we considered the importance of accountability. 
What is accountability?

     We all seek to increase our satisfaction.  At the most
basic level, satisfaction is the only thing we seek.  All other
goals are secondary.  We judge everything by how much we
expect it will contribute to our satisfaction.

     When we seek to hold others accountable, we seek to
maximize their contributions to our satisfaction.  Others treat us
the same way.  This sounds rather exploitative.  And, it can be.

     One way to hold others accountable is to threaten to hurt
them if they fail to serve us.  Those others may decide to serve
rather than suffer the consequences of failing to serve.  No one
holds the persons who make the threats accountable.  The name
for this is slavery.

     Many see more and more government as the way to
achieve accountability.  Supposedly government can force or
bribe others to properly serve us.  Before government can do this
it must first know how each of us wants to be served, and how
much each is willing to pay for each service.  Government must
also be willing to force others to serve the desires of each of us.

     This is impossible.  The most government can do is
attempt to force some to do what some others want them to do. 
The result is that mainly government tries to force individuals to
do what bureaucrats and politicians want done.  The goal is to
produce more satisfaction for the bureaucrats and politicians who
rule us.

     Even if government sincerely tried to give us what we
want, it couldn't.  Government threats intended to increase
accountability invariably have unintended consequences that
make mattes worse, or at least achieve nothing.

     The Michigan legislature passed a law that gives money
to school districts that accept outside students.  This may or may
not be a good idea.  The merit of the law isn't the point.  To get
the money some schools implemented plans to accept from one
to six outside students. The servant out smarted the master.  This
is only one small example.

     All work is directed at the production of consumer goods
and services.  Thus, all work is to serve consumers.  Real
accountability allows the consumers to hold producers
accountable.  The only effective way we have found to achieve
this accountability is for consumers to be able to refuse to accept
and pay for goods and services that don't meet their standards.

     When we do this the producers who best serve consumers
sell and prosper.  Those, who don't well serve consumers must
either do better of face bankruptcy.  Rather than letting
government decide what is good for us and how to deliver it,
each consumer chooses for himself.

     Not all must choose the same options.  One may prefer
low price.  Another wants quality.  Some prefer convenience. 
Perhaps some are greatly influenced by the color of the box. 
Various sellers will seek to better serve all of these interests to
attract paying customers.

     Employees of government enterprises mainly serve
bureaucrats and politicians who make rules and sign pay checks. 
The taxpayers who pay the bills, but don't sign the paychecks,
can only appeal to the bureaucrats and politicians.  This is a
pathetic substitute for being able to refuse to buy from the
failing service provider.  There is no effective substitute for
consumer sovereignty in a free marketplace.  Only king customer
can enforce real accountability.

     As we wander deeper into the swamps of government
imposed accountability, prices are going to go up and quality
will go down.  Supply will diminish.  As we approach the end of
this journey, everyone will be living in conditions that will make
North Korea and the former Soviet Union look good.  Anyone
who votes to expand government, or even to prevent government
from shrinking, is voting for this dismal end.

aldmccallum@gmail.com
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Copyright 2013
Albert D. McCallum

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