In recent years, transparency has become a popular political buzzword. From legislators to taxpayers, everyone seems to want government to be more transparent. As one example, the eminent domain reform bill recently passed by the Texas Senate is aimed at making the process more transparent. As another example, a bill introduced by State Senator Lois Kolkhorst would give “citizens the full rights to examine how our tax dollars are raised and spent in special districts across Texas.”
Certainly, citizens should know what government is doing with their money. But a lack of transparency isn’t the fundamental problem. The fundamental problem is that government has its nose in too many things.
We don’t demand transparency from our grocer or auto mechanic. We simply expect them to deliver the promised goods and services, and what they do with our money is their business.
But government isn’t a business, and it doesn’t operate like one. Businesses depend on our voluntary trade to acquire their revenues. Government tells us what revenue it demands from us. And we better pay, or else. Because government obtains its funds through coercive measures, many see transparency as a way to hold public officials accountable.
If government were limited to its proper purpose–protecting individual rights, including property rights, calls for transparency would be largely irrelevant . For example, if government did not grant eminent domain powers to private entities, there would be no need for more transparency in the eminent domain process. If government did not provide water and sanitation services, or create special taxing districts, more transparency would not be needed.
In truth, the plethora of government and quasi-government agencies makes it almost impossible for any individual to be informed about every taxing entity. More transparency won’t change that fact.
If we really want to know what government is doing with our money, we should be demanding that government do less.