What is government for?

Why does government exist, and what should it actually seek to achieve?

Political debate usually focuses on whether government should be bigger or smaller, whether taxes should rise or fall, and whether public spending and borrowing are excessive. But those arguments overlook a more fundamental question: what is government for?

In this video, I argue that government exists because some things can only be achieved collectively. Individuals, families, businesses and charities all contribute enormously to society, but none can create a legal framework for everyone, guarantee justice, maintain a common currency, protect shared resources or represent the interests of future generations.

Government should therefore be understood as society’s steward. Its purpose is not economic growth, balanced budgets or satisfying financial markets. Those may sometimes be useful means, but they are not ends in themselves. Government’s real responsibility is to create and protect the conditions in which people can flourish and realise their potential.

That requires justice, education, healthcare, environmental protection, monetary stability and long-term investment. It also requires representative democracy, meaningful local decision-making, accessible public service and proper concern for generations yet to come.

If government acts on behalf of society, what exactly must it steward? The answer leads to the next subject in this Economics of Hope series: capital, understood in its broadest and most important sense.