what effect does systemaccounting have on the size of government?

if the government deploys systemaccounting, won't this new responsibility increase the size of government?

A:

systemaccounting reduces the size of government

to understand the magnitude of the reduction in the size of government, consider "banks" as government-chartered lending firms tasked to carry out duties the u.s. treasury has injudiciously outsourced to the private sector

since the u.s. treasury is responsible for providing the service of money, leaving its users at the mercy of lenders who require accepting the service of borrowing & lending money (where market risk > 0) as condition of receiving the services of storing & moving money (where market risk = 0) is destructive

as i) capital is sold to "banks" in the form of credit (sellers have little choice), and ii) the path of capital continues to be centrally planned in the direction of a network of federally-chartered lending companies, the quantity of cash this network requires to stay in existence must inevitably grow because it serves to prop up lenders who require government intervention to continue supplying them cash they cannot afford

receiving exemption from paying competitive prices for capital by government naturally creates an inescapable dependency that has no other end except to take down the network along with its supporting host

in short, the "banking" industry is an ever-expanding branch of government that must continue to consume capital at amounts it cannot produce

and while systemaccounting detaches this artificial branch of government from the public, it also supplies a massive boost in accountability and productivity using fewer resources

such is technology

before the size of government can be debated, the subject of whether it knows what it's doing comes first

Was this helpful?