From a legal and economic standpoint, I’m relieved the Supreme Court stood firm on executive power. However, a part of me is a bit disappointed that I won’t be receiving “free” money. I want to point out one of the economic problems with a large portion of government: extraction.

Many policies are written to take from one group for the benefit of another or deny one group for the preservation of another. Political incentives differ from the market because you have the opportunity to take from one group to provide benefits to another. In the marketplace, you’re forced to provide value to receive payment from others. Value is created in this exchange. However, in the political sphere, one can simply decree that Carter’s debt now belongs to everyone else. Now, I know that this proposal was bad for the economy as a whole, but it would have been good for me (a recent college grad) in the short run. I’m incentivized by the system to advocate for policies I know are economically flawed and morally bankrupt because they’ll directly benefit me (at the expense of others). Many readers here agree with the problematic nature of student loan cancellation; however, what about zoning laws that protect the value of your home? From what I can tell, we zone areas as “single family residential” to preserve the property values of those already living there at the expense of those who cannot afford property themselves. A renter seeking to purchase a home may be appalled at such a realization, but as soon as she becomes a homeowner, she’s incentivized to keep up the barriers to entry for the good of her own “investment.” This is just one example, but there are numerous examples of simple extractions taking place in the political marketplace.

This twisting of incentives is one of the main reasons I advocate for a small government. Fewer restrictions, regulations, tax rules, and approval processes means fewer opportunities for extracting from one’s fellow man. People are sinful and are bent towards extracting from others. Fighting against our own selfishness and preventing people from taking advantage of one another is a key component of good government. When government becomes a tool for extraction, it fails at protecting individual rights, thus failing its primary purpose. The twinge of sadness I felt when I heard the news about the loan cancellation reminded me of the importance of remaining vigilant against extractive policies. It’s easy to fall victim to our own selfishness.