I’ve owed a response to this question to Jeff Miller for a few months (he suggested that such a government would be able to fund itself via direct monetary inflation). I recently promised continuum something more comprehensive. Since I haven’t provided satisfactory responses to either of them, I don’t feel too bad providing you the following non-answer. I feel a little bad rehashing things I know you’ve read.

One of the great things about any sort of capitalistic system is that no single person has to be able to figure out the answer to any of society’s difficult problems. “Let the market figure it out,” is a very powerful ideology. Instead of relying on any one person, you are relying on any person (if the problem bothers you enough, you might be relying on yourself). Someone attempts a solution, and people vote with the resources they’re willing to invest in the solution to allow one or more solutions to emerge.

You are now hypothesizing the existence of a government founded on those ideals, but relying on a single person (me) to propose a funding mechanism. Doesn’t that seem a bit inconsistent? My non-answer: you, me, Jeff, and ninety seven others each go start our own minarchist government. If ninety nine fail and one succeeds, I retroactively change my answer to the funding mechanism of the survivor.

Which funding mechanism do I choose first? A flat income tax with a continuous, decreasing EIC. Or maybe a national sales tax. Maybe if the government’s size is small enough relative to the national monetary base and economy, Jeff’s printing strategy. Or I make a poll. People can bid on any of the options or open new options. Then we enact the tax method with the most bids, adding the bids themselves directly to the tax base. Heck, maybe we do that every year. Maybe some people are so opinionated that the polling system pays for the government. Or maybe each year everyone bands together and bids to make the richest dude pay for everything.

Did you know I’d been drinking when you asked this question? Does my writing style change that much vs when I’m sober?