What is the proper role of government?

Former Brazil’s president Dilma Rousseff publicly lied by saying that she had a M.A. and a Ph.D. in Economics. The lie was discovered in 2009, when she still wasn’t Brazil’s president. Maybe that’s the problem with Dilma: she would even lie to say she was highly competent in economics.

Nobody in the 19th century believed that the role of government was to control the economy. This notion only became strong in the 20th century and to a great degree thanks to Keynesianism. It was Keynes who popularized the notion that the free market is inherently unstable, and that government should exercise some oversight on it.

Jair Bolsonaro, the Brazilian presidential candidate ahead in the opinion polls, has no problem admitting he doesn’t know enough about economics. For me, this is one of his main strengths. In the past, Bolsonaro was more statist. Today he shows signs of becoming more inclined towards free markets. He is clearly willing to delegate the economic policy of his government to people who are strongly favorable to the free market. In other words, Bolsonaro doesn’t know a lot about economics and he is not ashamed of admitting it. But he knows that too much government control ruins a country’s economy.

Dilma is arrogant. Part of her arrogance is to believe that she would be able to control the economy politically. Bolsonaro seems to be humble enough to admit that’s impossible. Keynes believed that the economy is inherently unstable. Contradictorily he advised governments to try to control it. Hayek’s answer to Keynes was that economics is not a science you can master in college. There are simply way too many variables for any human to control.

Bolsonaro’s focus is on public security. Criminality is on the rise in Brazil. People are afraid of walking on the streets, especially in big cities like Rio de Janeiro and São Paulo. That should be the role of government: to guarantee we can go out for work, come back, and not get killed or robbed on the way. If the government is doing that, it is already doing a lot. People freely and willingly interacting with one another can do the rest. Guarantee that evildoers will be punished, and watch the economy fly. And before I forget: contrary to cultural Marxism (and Rousseau), criminals are not victims of the society. Society is the victim of criminals.

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