This is where incentives come in to play. Wagner quotes Rudolf Hickel who distinguishes between an entrepreneurial state and a tax state (our present state of affairs). Hickel and Schumpeter both see the tax state as acting outside the normal laws of contract and property to confiscate wealth. The entrepreneurial state is just the exact polar opposite of this. Corporatist principles that have been incorporated into this system. Corporate structures were in their infancy in 1787 when the U.S. Constitution was written, hence the lack of corporatist principles (ibid, 56-57). We must now incorporate the wisdom of two centuries of follow on experience.
These corporatist principles would turn a government entity like a city into a private corporation with stockholders that would provide services. In this view, government has created some markets. It is in the market already. Therefore, for us to bring the entrepreneurial state, we need to introduce market types of reforms and incentives into these structures to shrink and limit their growth. Much like a business, government would then not expand beyond its ability to finance itself and would not attack private property and contract to raise such resources. By doing this, one programs in the self-interest of the market into limiting the growth of government to a manageable level. Government could then be "contractual government" just as exists in the corporate world (ibid, 62-63). Such principles must be applied to county, state and federal governments as well. Of course, something like this will take time.
However, can it not be argued that the tax state will not give up so easily to the entrepreneurial state. Certainly, things will have to get very bad before the people, the real power of this government are desperate enough to take it back and bring about the entrepreneurial state. History shows though that crises, like we have now, can be the beginnings of reform. Only when there is an emergency will the public as a whole reform the entire American society to bring such a real capitalist state into being. The present security/taxation state did not emerge overnight. It will take a thorough going effort at not just dismantling the present governmental system and replacing it with entrepreneurial structures. Rather, we must also reform our own minds and societal expectations. We must change our own attitudes and realize that the tax state is an illusion, that wars and other engines of runaway government spending can not bring permanent, real, sustainable wealth. Only structures that are based upon a respect for contract, private property and the sponsorship of thrift and innovation. Certainly, no one doubts that events such as a constitutional convention and an overall political revolution is necessary. However, the present crisis is the best opportunity to attempt to bring the Wagnerian entrepreneurial state into being and replace the present crony capitalism that has grown like a fungus on the old constitutional system. The crisis has already brought about the reaction of demonstration and recognition that something is wrong. However, the demonstrator in the Wall Street area can not yet articulate a viable alternative to more and more taxation. The entrepreneurial state is that positive alternative. Unless we provide an alternative, we can not be taken seriously. Wagner's book provides this alternative to the present crony capitalism that is killing us.
Effectively and for various reasons, massive changes in our effective constitution (not just our paper one) has been creeping in the direction that it has come to now over more than half a century. This effective transfer of power has had an incredible effect, greatly increasing the economic powers of the federal government, especially in the period since the founding of the current welfare state in the 1930's and its military industrial corollary in the 1940s and after during the years of American empire. The present constitutional crisis brought about by an imperial president ruling by executive decree has have revived interest in the problems of deep political constitutional maintenance. This essay found that the conventional American theory of constitutional governmental maintenance will have to be overhauled through the institution of the entrepreneurial state to replace the current tax and national security state that we are now burdened with. The most important conclusion is that the present crisis has brought about reaction. It is now the job of libertarians to provide the positive solution in the institution of the entrepreneurial corporatist state where the market will work as a self-motivated incentive to reign in the power of government of the mob to confiscate the wealth of the toilers who work and make the society function. This effectively will provide the key for the chastity belt and give it back to the people where it belongs.
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