Kejda Gjermani her miscellaneous musings

19Jul/100

RE: The Problem of Economic Calculation

In this entry, I argued that the census is of little value to central planners. The cost of over $11 billion is one fact I cited against it, but on second thought, no critique on that front holds water, because the Constitution itself mandates the taking of the census—and for a purpose wholly unrelated to the gathering of economic intelligence. So if the government must take the census, the cost of doing so does not signify.

It seems to me, however, as though the government already possesses all the information the census is meant to collect and more—neatly tucked away in the IRS Individual Master File: name, income, spouse, dependents, residence, whether you own or rent the place where you dwell, what you ate for breakfast, etc. The only question on the census to which the IRS doesn't already demand an answer—that I know of, at least—is that of race. "But ... but ... that's not what the Constitution says. The founders meant for the census to..." Yeah, sure. ... Indeed, that such an institution as the IRS should even exist in these united states would scandalize the founders if the poor devils were around to take note. No matter. The IRS is here to stay. So why not make the most of it? The government could query its database every year, instead of ten, by means of an electronic process, which would practically cost nothing. That's over $1 billion of savings a year, which could, in turn, be wasted far more imaginatively over trifles less mundane.

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