Big government, efficiency and equity: A reply to Peter Wilenski

Abstract

Abstract Wilenski defends the post‐war expansion of state economic intervention and welfare services against criticism from the ‘small government’ school. He argues that this expansion (i) cannot be shown to have damaged economic efficiency; (ii) has promoted social equity/equality; and (iii) has promoted freedom (in a broad sense of the term). This essay argues that, on the contrary, big government (i) fends to harm efficiency; (ii) in many ways works against equity and equality; and (iii) brings only equivocal gains in freedom and erodes freedom of choice both by promoting dependence on state services and by claiming ever‐increasing shares of private incomes in the form of taxation. Finally, certain possible points of agreement between egalitarians and libertarians are indicated in the area of policy prescriptions; some welfare may be dispensed in such a way as to promote efficiency, equality, and freedom.