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The Fraser Institute, Essential Schumpeter: The Reality of Government

Essential Schumpeter: The Reality of Government

Welcome to the essential ideas of Joseph Schumpeter. One of Schumpeter's many unknown

contributions to economics was his insights into the reality of how

government functions. He realized that to understand

government you must first understand the people involved, be they voters,

politicians, or bureaucrats. Schumpeter observed that these people are not

selfless or benevolent who, somehow stopped worrying about their own

self-interest just because they joined the political process. Instead, people

involved in government have personal preferences, and self-interests, just like

the rest of us, that affect their actions and decisions. Let's demonstrate this

with an example using "Protectionstan" and "Openstan". These neighboring

countries both love milk and cheese. Openstan enjoys free trade and dairy

products, resulting in lower prices and more choices. But Protectionstan does

not. Why this striking difference in the two countries? Schumpeter's answer is

government. In Protectionstan, the dairy producers pay a portion of their revenue

to an industry association that lobbies the government to limit the number of

producers, how much each can produce, while limiting dairy imports. This

association spends a lot of money helping to elect politicians who support

these restrictive policies, and lobbies bureaucrats to ensure the market

protections stay in place. Why? Because producers in Protectionstan

enjoy higher revenues and profits as a result of the protections.

This means that people in protection stand pay higher prices and get less

choice. Openstan, on the other hand, has completely open trade and dairy products

meaning that both domestic and foreign farmers can produce and sell without the

limitations present in Protectionstan. The absence of barriers and increased

dairy competition in Openstan means that consumers pay lower prices and

enjoy more choice in what dairy products they can buy. Schumpeter's insights into

the nature of government and the role of people in the political process

significantly advanced our understanding of government decisions and actions. For

more information on Joseph Schumpeter, visit EssentialSchumpeter.org and to

learn about more essential scholars visit EssentialScholars.org

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Essential Schumpeter: The Reality of Government |||rzeczywisto|| Wesentlicher Schumpeter: Die Realität der Regierung Schumpeter esencial: La realidad del gobierno L'essentiel de Schumpeter : La réalité du gouvernement エッセンシャル・シュンペーター政府の現実 필수 슘페터: 정부의 현실 Esminis Schumpeteris: The Reality of Government (Vyriausybės realybė) Essential Schumpeter: The Reality of Government O essencial de Schumpeter: A Realidade do Governo Эссенциальный Шумпетер: Реальность правительства Temel Schumpeter: Devletin Gerçekliği Сутність Шумпетера: Реальність уряду 熊彼特要论政府的现实 熊彼特要论政府的现实

Welcome to the essential ideas of Joseph Schumpeter. One of Schumpeter's many unknown ||||||||||||nieznanych Zapraszamy do zapoznania się z najważniejszymi ideami Josepha Schumpetera. Ласкаво просимо до основних ідей Йозефа Шумпетера. Одна з багатьох невідомих ідей Шумпетера

contributions to economics was his insights into the reality of how |||||见解||||| wkład|||||spostrzeżenia||||| كانت مساهماته في الاقتصاد هي رؤيته لواقع كيف wkładem w ekonomię był jego wgląd w rzeczywistość tego, w jaki sposób внесок в економіку полягав у його розумінні реальності того, як những đóng góp cho kinh tế học là những hiểu biết sâu sắc của ông về thực tế làm thế nào

government functions. He realized that to understand |||zdał sobie spraw||| Zdał sobie sprawę, że aby zrozumieć funkcje rządu chức năng của chính phủ. Anh nhận ra rằng để hiểu

government you must first understand the people involved, be they voters, ||||||||||选民 |||||||zaangażowani|||wyborcy ||||||||||избиратели Rząd musi najpierw zrozumieć zaangażowanych ludzi, czy to wyborców, Для того, щоб зрозуміти, як працювати з урядом, ви повинні спочатку зрозуміти людей, які беруть у ньому участь, будь то виборці,

politicians, or bureaucrats. Schumpeter observed that these people are not ||官僚||||||| political leaders||||||||| ||biurokraci||||||| ||бюрократы|Шумпетер|||||| các chính trị gia, hoặc các quan chức. Schumpeter quan sát thấy rằng những người này không

selfless or benevolent who, somehow stopped worrying about their own 无私的||仁慈的||||||| bezinteresowny||||jakoś||martwienie się||| ||благожелательный||||||| selbstlos oder wohlwollend, die irgendwie aufgehört haben, sich um ihre eigenen bezinteresowni lub życzliwi, którzy w jakiś sposób przestali martwić się o własne

self-interest just because they joined the political process. Instead, people |||||||politycznej||| Eigeninteresse, nur weil sie sich dem politischen Prozess angeschlossen haben. Stattdessen sollten die Menschen

involved in government have personal preferences, and self-interests, just like |||||偏好||||| |||||preferencje osobiste||||| die an der Regierung beteiligt sind, haben persönliche Vorlieben und Eigeninteressen, genau wie

the rest of us, that affect their actions and decisions. Let's demonstrate this der Rest von uns, die ihre Handlungen und Entscheidungen beeinflussen. Lassen Sie uns dies demonstrieren

with an example using "Protectionstan" and "Openstan". These neighboring ||||||||邻近的 ||||Beschermstan||Openstan|| ||||||Openstan||sąsiadujące mit einem Beispiel anhand von "Protectionstan" und "Openstan". Diese benachbarten z przykładem wykorzystującym "Protectionstan" i "Openstan". Te sąsiadujące ze sobą на прикладі "Protectionstan" та "Openstan". Ці сусідні

countries both love milk and cheese. Openstan enjoys free trade and dairy ||||||开放斯坦||||| |||||||cieszy się||||nabiał Beide Länder lieben Milch und Käse. Openstan genießt den Freihandel und die Milchwirtschaft Обидві країни люблять молоко та сир. В Опенстані вільна торгівля та молочні продукти

products, resulting in lower prices and more choices. But Protectionstan does |导致||||||||保护国| |leading to||||||||| |prowadzących do||||||||ochrona produktów| Produkte, was zu niedrigeren Preisen und einer größeren Auswahl führt. Aber Protectionstan tut

not. Why this striking difference in the two countries? Schumpeter's answer is |||uderzająca|||||||| nicht. Warum dieser auffällige Unterschied zwischen den beiden Ländern? Schumpeters Antwort lautet

government. In Protectionstan, the dairy producers pay a portion of their revenue |||||producenci|||część||| Regierung. In Protectionstan zahlen die Milcherzeuger einen Teil ihrer Einnahmen

to an industry association that lobbies the government to limit the number of |||||游说||||||| |||||lobbują||||ograniczyć||| an einen Industrieverband, der bei der Regierung Lobbyarbeit betreibt, um die Zahl der

producers, how much each can produce, while limiting dairy imports. This |||||||限制||进口| |||||||ograniczając||importów| Erzeuger, wie viel jeder von ihnen produzieren kann, während die Milchimporte begrenzt werden. Diese

association spends a lot of money helping to elect politicians who support ||||||||选举||| stowarzyszenie||||||||wybierać|||popierają ||||||||избирать||| Verband gibt viel Geld für die Wahl von Politikern aus, die die Stowarzyszenie wydaje dużo pieniędzy, pomagając wybierać polityków, którzy wspierają

these restrictive policies, and lobbies bureaucrats to ensure the market |限制性|政策||||||| ||polityki|||||zapewnić rynek|| diese restriktiven Maßnahmen und setzt sich bei den Bürokraten dafür ein, dass der Markt

protections stay in place. Why? Because producers in Protectionstan 保护措施|||||||| ochrony|||||||| Schutzvorrichtungen bleiben an ihrem Platz. Warum? Weil die Hersteller in Protectionstan

enjoy higher revenues and profits as a result of the protections. ||||利润|||||| ||przychody||zyski||||||ochrony infolge der Schutzmaßnahmen höhere Einnahmen und Gewinne erzielen. отримують вищі доходи та прибутки в результаті захисту.

This means that people in protection stand pay higher prices and get less |||||ochronie||||||| Das bedeutet, dass die Menschen in der Schutzzone höhere Preise zahlen und weniger bekommen.

choice. Openstan, on the other hand, has completely open trade and dairy products |Openstan||||||||||| Wahl. Openstan hingegen hat einen völlig offenen Handel und Milchprodukte

meaning that both domestic and foreign farmers can produce and sell without the |||krajowy||||||||| Das bedeutet, dass sowohl inländische als auch ausländische Landwirte produzieren und verkaufen können, ohne dass die

limitations present in Protectionstan. The absence of barriers and increased |||||||障碍|| ograniczenia|||||||barier|| Einschränkungen, die in Protectionstan bestehen. Das Fehlen von Barrieren und die erhöhte

dairy competition in Openstan means that consumers pay lower prices and ||||||消费者|||| |konkurencja mle|||||konsumenci|||| Der Wettbewerb bei Milchprodukten in Openstan bedeutet, dass die Verbraucher niedrigere Preise zahlen und

enjoy more choice in what dairy products they can buy. Schumpeter's insights into mehr Auswahl beim Kauf von Milcherzeugnissen haben. Schumpeters Erkenntnisse über

the nature of government and the role of people in the political process das Wesen der Regierung und die Rolle der Menschen im politischen Prozess

significantly advanced our understanding of government decisions and actions. For hat unser Verständnis von Regierungsentscheidungen und -maßnahmen erheblich verbessert. Für

more information on Joseph Schumpeter, visit EssentialSchumpeter.org and to Weitere Informationen über Joseph Schumpeter finden Sie auf EssentialSchumpeter.org und auf

learn about more essential scholars visit EssentialScholars.org