The Government's Dilemma
The classic dilemma for government is surely the tension between taxation and public spending. In a way, this acts as a model for more complex dilemmas that I’d like to look at in this essay. So, briefly, here is the tax-spend dilemma. Citizens don’t want to face extra taxation, but citizens want better public services. So how is the government supposed to resolve this? The strange thing about the dilemma is that it is not something hidden or obscure. Everyone knows public services have to be paid for. Everyone knows that this must be done through taxation. Everyone knows that to improve public services taxation would have to rise – there’s only so much that can be done by way of efficiency savings. And, as there’s likely to be inflation in the economy, even maintaining public services at their current levels must mean spending more, and therefore more tax. But, well, the really strange thing is that whilst everyone knows these basic facts, no government is really able to com...