Political Climate Control
What follows is a simplification of the political climate into one metaphorical issue upon which people have different opinions. I think this example clearly shows why anything that we allow our government to regulate tends to make most people less well off – and how political parties make things even worse.
So, please now consider some of the the various possible systems for deciding on the setting of your bedroom thermostat:
Free Market:
We all live in our own houses and sleep in our own rooms. Each of us has a thermostat, with which we can individually regulate the temperature we choose for that room, based on all the personal factors that weigh into that decision – what range of temperature we are comfortable sleeping in – how much it costs to keep the room at a given temperature, etc… Whatever decision we make, it is the best possible one for us individually, and makes us as happy as we can possibly be, given all the factors involved.
Estimated percentage of total possible value achieved <= 100%
Democratic Central Regulation:
A central authority decides what is the best possible temperature for our room. We have no control over that temperature, other than to vote on what it should be. The average of these votes is chosen. Some people will find that their rooms are colder or hotter than they might like, but only to the degree that they differ from the average. If we assume a standard distribution of preference from the norm, we find that, but with some outliers in total agony, most people are not too greatly inconvenienced.
Estimated percentage of total possible value achieved <= 70%
Partisan Democratic Central Regulation:
A Red Party exists for those who prefer hot temperatures – a Blue Party for those who prefer cold. In each selection period, party primary selections pick two temperatures that compete in the general selection. Only those truly committed to extreme hot or cold consider themselves party members and vote in the primaries, where primary candidates boast about how much hotter or colder than their opponents they are. So in the general selection, the two chosen candidate temperatures are each at least a standard deviation off the norm in opposite directions. Regardless of whether it is the Red or Blue temperature that is finally chosen, more than half of the country is unable to sleep at night.
Estimated percentage of total possible value achieved <= 50%