Essential Nature of the Conflict Between Individualism and Collectivism

Individualism

Government is very limited with the use of the law, as to what it can force the entire group (city, state, country) to do. Government uses the law only to protect an individual's or group's life, freedom and property from harm by other individuals, sub-groups or external groups.

In doing this, government will try to assist in restoring individuals/groups who are harmed to their un-harmed state, by forcing the offending individuals/groups to make restitution to the harmed individuals/groups.

However, government itself does not restore harmed individuals/groups to their un-harmed state, regardless of how they were harmed.

As such, government is a crucial but inactive participant in human activity, much like a referee is an inactive but essential participant in a football game.

Notice that government does not protect the citizens from itself. The only protection citizens have from the government is by the citizens themselves.

Collectivism

Government uses the law to do almost anything deemed necessary. This is justified because the government is elected by the majority, so its actions must be the best possible for all those governed.

Besides trying to protect, as in individualism, the government tries to increase fairness and justice, by making and enforcing legal systems, which put government, not only in the position of protector of life, freedom and property, but also in the position of re-distributor of wealth to those represented by large enough sub-groups.

The re-distribution is accomplished through, for example, all sorts of quotas and taxation, where these laws are superimposed upon all financial transactions between individuals, corporations, other levels of government, etc. You cannot legally sell something to your customer unless the government collects a sales tax. You cannot get paid a wage without the government collecting an income tax. You cannot sell eggs without operating within restrictions of a marketing board.

The beneficiaries of the wealth obtained by governments in this way can be individuals obtaining welfare benefits, unions, associations, special interest groups or corporations with strong lobbies - any sub-group composed of a large enough number of individuals. The name of the game here is to use the power of government to channel any available wealth in your own direction.

Besides being a protector of citizens and a re-distributor of wealth, government often becomes an active player in the business of life, much like if a referee in a football game were to assist the underdog to move the ball. This is exemplified in the government's running the postal service and the education system or giving different tax treatment to individuals in different situations.