Governmental institution, in its productive activities, depends on the same praxeologic laws which apply to any other firm. A government which sells its products at more expensive prices than other governments or gives less quality in exchange for a given amount of money compared to others will receive less and less resources till it goes, sooner or later, to the bankruptcy; this is, to a situation of revolution in which governmental structure is fundamentally modified.
Governments open to competition (in the form of at least free migration in and out, access to information on the performance of foreign governments, and checks and balances) are more suitable to perform well and finally survive than those trying to impose barriers of entry to competition.
Although usually the epicenter of central planning of society, government is itself a sort of spontaneous ordering and, as such, it evolves in ways which can't be predictable but on the point that they will tend to survive if satisfy consumer sovereignty or disappear otherwise.
So, quoting Mises at length:
"A statesman can succeed only insofar as his plans are adjusted to the climate of opinion of his time, that is to the ideas that have got hold of his fellows' minds. He can become a leader only if he is prepared to guide people along the paths they want to walk and toward the goal they want to attain. A statesman who antagonizes public opinion is doomed to failure. No matter whether he is an autocrat or an officer of a democracy, the politician must give the people what they wish to get, very much as a businessman must supply the customers with the things they wish to acquire." Theory and History, page 187.
Governments open to competition (in the form of at least free migration in and out, access to information on the performance of foreign governments, and checks and balances) are more suitable to perform well and finally survive than those trying to impose barriers of entry to competition.
Although usually the epicenter of central planning of society, government is itself a sort of spontaneous ordering and, as such, it evolves in ways which can't be predictable but on the point that they will tend to survive if satisfy consumer sovereignty or disappear otherwise.
So, quoting Mises at length:
"A statesman can succeed only insofar as his plans are adjusted to the climate of opinion of his time, that is to the ideas that have got hold of his fellows' minds. He can become a leader only if he is prepared to guide people along the paths they want to walk and toward the goal they want to attain. A statesman who antagonizes public opinion is doomed to failure. No matter whether he is an autocrat or an officer of a democracy, the politician must give the people what they wish to get, very much as a businessman must supply the customers with the things they wish to acquire." Theory and History, page 187.
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