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Authorities it is better to serve interests of people
The constitutional norms should provide a harmonious combination
Democracies with strong economy
The STATE PROTECTING the LAW and order and giving the blessings, which
The society cannot receive "in the market", promotes well-being of all
The wise and economical state should keep people from causing
Mutual harm, giving to their in all the rest free rain of employment,
And without taking away from them them the earned bread... It is everything that is required from
The good state.
From the letter to Andrew Jackson.
The state can promote joint activity of members of a society and
To increase an economic well-being of nation two ways:
To provide protection of a life of people, their freedom and the property (if
Last has been got without the use of force, a deceit or larceny);
To give some blessings with specific properties,
Complicating their reception through the market.
The Nobel winner James Bjukenen names it according to the protective
(protective) and productive (productive) state functions.
Protective function consists in safety and order maintenance, switching on
The control over execution of the laws forbidding larceny, swindle and
Violence. The state possesses a monopoly on force application in
The purposes of protection of citizens from each other, and also from external threats.
In other words, the state aspires to prevent a damage, which people
Can put each other, and watches observance of the code of laws, in frameworks
Which people can peacefully co-operate. Thereupon critically
Important for a well-being of nation are the control over observance
Contracts and refusal of any restrictions, regulating instructions and
The differentiated taxes interfering an exchange.
Economic value of protective function is obvious enough. If
The state carries out it adequately, people believe that will not be deceived also all
Made by them it will be protected from encroachments not only robbers,
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