Third, government activities fail to create value because the funding comes from a compulsory source: taxes. Unlike in markets, bad government decisions are not punished and failed policies are not weeded out because the funding is not contingent on performance. Low-value programs can live on forever, and they block the reallocation of resources to better uses.

ob·liv·i·on

In markets, the quest for profits spurs businesses to search for better ways of doing things. Businesses aim to maximize value for themselves, and they end up boosting the broader economy, which is the “invisible hand” of Adam Smith. In government, there is no invisible hand, no guide to steer policymakers in a constructive direction. Here….