Economic theory on how to build a weathly powerful state?

Answer 1

One could have total state control of everything and redistrabuting the production to feed the people, but it would cause less development because the people have less reason to do better because the people in that nation would always have a set amount of goods that the government gives them for working. The more the nation controls the people the more the people want to work less and revolt more. As well as the nation has to have production to create more production because for the state to own everything the state has to already have goods to create the nation. So state controlled production is generally bad. In a free market system the people are insintivised to compete for better wages and cheaper goods for society. A free market is also built by the people and the state in charge has less need for production in the beggining because the people would all compete to make the society as quickly as possable to better there own lives. The state would collect taxes to fund itself in most cases, but in an ideal system the government would not be paid, allowing the people to use there funds to better society themselves, as well as the government could be made of unpaid elected officials who want the job to better society. A free market leads to better lives for the people and more tecnological and societal advancements that make the nation powerful.