Government Incentives and Programs

[ian_co]

What is your libertarian view point on government incentives?

I was watching Ron Paul and he mentioned something along the lines that capitalist countries are becoming more socialist and that Communist countries such as China are becoming more capitalist, and mentioned that in China they give bonuses to those who are innovative.

Other things i thought about was government scholarships for students who earn high enough grades, or providing incentive to companies to invest in green technology.

Firstly, isn't this a form of government involvement in the economy?

Secondly, if the role of the government is to protect the rights, liberties and freedoms of the people, what is the purpose of providing incentives for people to work hard and become innovative?

[jclay2]

The government does not have perfect knowledge about the trillions of transactions that take place in the market place. In a free market, the incentive is entirely a function of price. Goods and services with higher price provide incentives for producers to move in on the market and make profit (in the end lowering the price). Why should we let government decide how resources are allocated when the market does it by itself. The government should get out entirely of the market and let prices provide the motive. Simple as that.

[ian_co]

i need to find that clip where he says China is becoming more capitalist and is rewarding their citizens for working hard..