There’s no questioning the need to have an administration to run the affairs of a country. But there are limits to it. The proceeding information should make clear why minimal government is necessary. This is true for both the individual and business.
To Protect Privacy
It’s true that the state has the right to protect its citizens. But this shouldn’t come at the expense of taking away their privacy. In authoritarian countries, the rights of people have been taken away in the name of peace and security. Providing information about yourself is necessary on occasion. But too much personal data is not.
It’s not uncommon to hear of personal information being taken away and used for blackmail or making threats. For the layman, this is the main reason why minimal government is necessary. Too much information in their hands can lead to trouble.
To Prevent Abuse of Power
Too much power will inevitably lead to abuse. By keeping the function of a regime to the bare essentials, it won’t harbor thoughts of extending power. The opposite will happen if too much authority is given them.
There is a saying that absolute power corrupts absolutely. Too often this has proven to be true. For this reason, power is shared in democratic countries: executive, judiciary and legislative. Even then, their functions should be kept to the basics.
So Business Can Profit
For businesses, there are other reasons why minimal government is necessary. Foremost is that the state is usually a poor business partner. This doesn’t always hold true, but in most cases it does. The problem is that most government agencies aren’t familiar with the current business atmosphere.
The key to surviving in a tough business climate is adaptation. Government agencies are notorious for their inability to adapt to the changing environment. The state also tends to work with a different mentality.
For this reason a lot of companies don’t like it when an administration steps in. Because of the state’s inability to manage, a company will lose money. In some countries, state run businesses often end up losing money or being in debt.
To Avoid Bureaucratic Red Tape
Aside from plain incompetence, another reason why minimal government is necessary is to avoid hassle and red tape. Anyone who has tried to conduct a transaction in a government agency will attest to this. If these agencies were given more control and power, it could cause a gridlock in commerce and trade. As it is, getting permits and paperwork done can take a long time.
To Lessen Corruption
Graft and corruption in government happens in virtually every country. There’s a reason why people place more trust when private companies are involved. It doesn’t matter if the project involves bridge construction, railways etc.
Most believe that the project will be of poorer quality when the state is involved. The reason is corruption. Unscrupulous officials get low quality products so they can kickback the money.
There are other explanations as to why minimal government is necessary. But the above-mentioned should be sufficient to show the less the government is involved, the better for everyone.