[MD] Flying Spaghetti Monsters

[craigerb at comcast.net]

Ian,
I'll concentrate on (2), since we mostly agree on (1), (3) & (4), while in (5) you reintroduce the bad-interference-is-bad argument that we're both trying to avoid. 
[Ian] 
> (2) [Interference] may be "bad' for some individual members, better for other 
> individuals...incentives and limits can (do) have positive value.

That's the point.  In a free market transaction, the participants act in a way beneficial to both parties. Why should government come along & interfere with this dynamic to the benefit of one party & the detriment of the other?
As for incentives (= subsidies):  a) the government rarely has the expertise that the "invisible hand" of the market can provide; b) subsidies are usually the result of special interest lobbying; c) those sitting comfortably in government do not have the incentive to make quality decisions that those who are affected by them do; & d) one person's subsidy is another person's tax burden.  Replay my argument 1)-5) substituting 'subsidy' for 'interference'.    
 
> Even in Rand's utopia, the members FREELY (my emphasis) delegate some of > their choices to certain members, and support their specialist authority on 
> certain subjects.

That 'FREELY' is what makes it a utopia.
 
> By free choice, people choose to have controls and incentives on 
> otherwise "free" markets...the only weak link is in choosing the form of 
> governance to which you delegate such (contingent) authority.

The real weakness is that in regard to the economy such authority is unnecessary & counterproductive.

> Some form of democratic freedom seems to be the clear "western' choice, but 
> there are many possible flavours for setting up such institutions, and 
> remembering that they are just that ... instituted as servants of the 
> (free) people.

I agree with the choice of democracy for political institutions, but prefer the free market as the economic institution.  When I meet 2 muggers in an alley, I don't want to vote on who owns my wallet.
Craig