Government Involvement in Voluntary Transactions: The Case of Costco Selling Gold
The idea of federal or state government officials like Joe Biden or Donald Trump interfering in the sale of products by private companies raises important questions about the nature of government and its engagement in the economy. Should Joe Biden allow Costco to sell gold?
The Question from a Broader Perspective
Why is the sale of any legal product, such as gold in this case, the business of the president, a state governor, or any other elected or appointed public official? If Costco wants to sell gold and people are willing to buy, is there really an issue that requires government attention or intervention?
Currently, governments are involved in a wide range of areas that do not inherently require such interference. This includes mundane issues like the types of light bulbs we use, automobile mileage standards, water conservation efforts, and the types of home appliances we purchase. These are areas where government agencies often insert themselves without necessarily providing better solutions.
Role of Government and the Inevitability of Regulation
The fundamental role of government is not to "allow" legal and voluntary transactions between consenting adults. Government should focus on providing essential services that are difficult to provide through the traditional market system. Such services include law enforcement, fire protection, the military, courts, public transportation, and some other areas. However, the governmental responsibility should be more limited than what is currently seen.
Every additional responsibility we assign to the government means higher taxes for the productive members of society, the ones involved in the public sector, because these responsibilities cost money. Some will argue that even the current level of government involvement is unsustainable, with a total of 30 trillion in federal debt and the unfunded liabilities of Social Security and Medicare programs. This is all due to the government's expansion into areas where it had no business, such as broad social programs that cover almost everyone.
The Case of Costco Selling Gold
Should Costco be allowed to sell gold? The answer lies in the consideration of voluntary transactions. Whether Costco sells groceries, furniture, or gold, the involvement of government is minimal beyond the collection of sales taxes and the regulation of sales to underage buyers.
Putting restrictions on what companies can sell, such as gold, undermines the principle of free market transactions. It seems illogical to question the legality or necessity of such a transaction, as individuals and companies should be free to engage in such voluntary exchanges.
Conclusion
Government should refrain from interfering in the voluntary transactions of consenting adults, as this area is best left to the private sector. The role of government should be focused on providing essential services that cannot be adequately provided by the marketplace. The endless expansion of governmental roles not only leads to higher taxes but also diminishes the private sector's ability to innovate and serve the public's needs efficiently.