This publication has been written to inform Canadians about the theories and insights of Public Choice Theory, to document government failure from the reports of the Auditor General, and , perhaps most importantly, to describe the mechanisms available to reduce government failure.

In a recent survey of investment fund managers, respondents were asked to rank policy areas in order of their importance in fostering a positive investment climate. The top four of ten policy areas were all related to taxation: corporate income tax, personal income tax, corporate capital tax, and capital gains tax.

The current state of the Canadian Forces (CF) is the result of political, not military, decisions undertaken over the past couple of decades. The decline in capability can be measured in terms of a decline in funding, of delayed replacement of obsolete and obsolescent equipment, of a high operational tempo, of declining numbers of personnel, of consequent low retention rates, and of many other indices.