For example, with regard to energy policy, I wouldn’t be opposed to the government establishing a large carbon tax. A large carbon tax would be “big government” in the sense that it would have a large economic effect relative to laissez-faire. But it would be simple and therefore would have little overhead. It would be easy for voters to understand, easy for economists to evaluate, and easy for companies to make decisions about without having to hire extra bureaucrats and lawyers to ensure compliance. Ensuring compliance with complex regulations is a deadweight loss.
Does that basically mean Singapore is okay, but the US isn’t? Otherwise what’s your idea of not overly complex big government?
For example, with regard to energy policy, I wouldn’t be opposed to the government establishing a large carbon tax. A large carbon tax would be “big government” in the sense that it would have a large economic effect relative to laissez-faire. But it would be simple and therefore would have little overhead. It would be easy for voters to understand, easy for economists to evaluate, and easy for companies to make decisions about without having to hire extra bureaucrats and lawyers to ensure compliance. Ensuring compliance with complex regulations is a deadweight loss.
I think you underrate the complexity of carbon taxes. Measuring emissions isn’t trivial. Various offsetting schemes can also get complex.
The complexity of emissions taxes is orders of magnitude lower compared to current US legislation.