Source: The Daily Economy
by Michael Munger
“Adam Smith said it all, in Wealth of Nations: ‘The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.’ Now, we might interpret ‘toil’ as the cost, or money price, of the thing, and ‘trouble’ as the transaction cost, or inconvenience of the purchase. Then an increase in either the money price, or an increase in trouble, are both cost increases. Demand curves slope downward, so people are better off if the price, or the ‘trouble,’ are reduced. They are substitutes, for citizens. The problem is that these two costs are not seen as substitutes for bureaucracies, not at all. The result is that citizens are constantly paying substantial, and easily avoidable, ‘taxes’ in the form of trouble, just so bureaucracies can save money.” (12/03/24)