I’m sorry if Smartass has departed this thread, because his responses beg some questions. I stopped posting along the “when might government be justified” line a while ago since it was a thread hijack, but since the OP has disappeared, I’ll hop back in.
First, Smartass seems to agree that private insurance companies would set rules on medical treatments funded. Note that this is because (1) decisions on treatment are made by doctors since patients lack information and (2) due to risk, patients insure, so that payments are predominantly made by third parties and the monitoring discipline of prices in the market are absent in health care. (see any health economics text)
If private companies can set limits as to allowable treatments, why might not government? Smartass seems to object mainly on the grounds that it is government, not on the nature of the limitations, and lauds objections to this.
Surely, even if government sets inappropriate guidelines, it does not make those who break them moral heroes. It just makes them fools in an inappropriate system. If a government corruptly allocates property rights, a person who steals is still a thief, he is not striking a blow for liberty. Likewise a person who regards FDA regulation as overweening should not regard someone who touts a quack treatment as striking a blow for liberty, merely as an inadequate in an inadequate system.
Thirdly, the fire protection analogy is entirely misconceived. The externalities (effects unpriced in the market) in fire protection are entirely local, and one cannot subscibe to another jurisdiction’s fire protection if one wishes to free-ride. The issue as to the appropriateness of government-provided fire services is, in addition, not an issue of whether there would be any fire services provided for in the market, but whether it would internalise all marginal externalities.
The effects of health regulation cross local boundaries due to patient mobilty. Setting local limits would be entirely ineffective, due to interjurisdictional competition. In any case there is no reason to supppose that local voting is any more “representative” of preferences than national voting. (Brennan/ Buchanan or any public choice text on the “paradox of voting”)
Finally, Smartass persists in defining the legitimate role of government to one which conforms to his ideology (one that I might add I have considerable sympathy with). This is not the point: the rules of society are (as opposed to ought to be) a compromise. Some pople are libertarians, some aren’t. The legitimate role of government within that compromise can be argued about. The issue of whether it is a good compromise is entirely different.
That Smartass would set different rules about the scope of government is relevant only if s/he can get others to agree. If not s/he has to take into account the views of others in order to gain their consent (which is presumably Smartass’ criterion of legitimacy).
picmr