In every major event these days we are inevitably greeted with a plethora of books rushed into publication, and a few re-released in “updated” form, heralding the supposed knowledge and foresight of our esteemed intellectuals and commentators. Many haughtily present a “See!?! I told you so” attitude when they were in fact, about as prescient as Wyle E. Coyote after falling into one of his own traps.So it should come as no surprise that the most prolific sector of the economy at present is in books heralding the death of “laissez faire capitalism” as a result of the current market meltdown. After-the-fact rationalizations aside, this problem was predicted long before the first signs of impending doom materialized. Those predictions came not from otherworldly mystics glancing into a crystal ball. They emanated from the minds of the defenders of “laissez faire capitalism.” I won’t delineate them here but the Ludwig von Mises Institute, Cato Institute and Heritage Foundation are among those who, as early as 1999, issued the well-worn caveats in the face of foolhardy government polices. Derided as Cassandra mavens at the time yet we would be so much the better had we listened. After all, I believe Cassandra turned out to be right as well.
No one was willing to listen when warned that interference with the market mechanism would alter the functions of the system in ways contrary to its natural character. The market works on the basis of laws as important as the physical laws of the universe and when you introduce burdensome regulations, quixotic government policies, confiscatory taxation, ad nauseum you violate those laws and are forced to deal with the consequences thereof. Prices, profits and losses are integral facets of the market system which exist to relay signals to us all of how we should invest our resources. Once you attempt to regulate prices and/or insure against loses, you permanently obscure those signals and the market if it is to survive must react, not on the basis of legitimate data, but on the basis of distortions over which the players have no control and even less reliable information.
Now the politicians react as politicians are expected, by pointing the finger of blame at anything and everything but public policy. And they are trying ever so desperately to convince the public that the cure lies in even more government policy. In essence attempting to “fix” the problem using the very thing that caused it: socialism/statism. This isn’t a flu wherein we can treat it with a milder form of the virus. Socialism is a cancer. And like all cancers, it must be excised now before it irreparably afflicts the entire organism.
Laissez faire capitalism to balme? Laissez faire capitalism was not allowed onto the playing field. Like Wyle E Coyote, the statists among us set traps to ensnare the market, and they find themselves yet again, caught in their own device. And they have the nerve to look surprised.
There was on article on Drudge about a rising 'fear of far-Right Fascism' do to the financial crisis. Who is raising this concern? The British Labor Party.
ReplyDeleteBasically what they are saying is, stay away from the Right side of the ideological spectrum or else you're supporting Hitler.
Its like the Wizard of Oz saying pay no attention to the man behind the curtain. The answers have always lied on the Right. Therefore the Left must resort to lies to advance their agenda.
It has always fascinated me the degree to which the Left would go to demonize its adversaries. I as once on the political Left and one of the things that shoved me out of the club was the fact that they found it necessary to lie about others. I reasoned that if our enemies are the daft gits we believed them to be, all we need to is present the evidence as-is and the truth will speak for itself. The very fact that we were unable or perhaps unwilling to do so told me that there may be something in the views of the political Right worth examining. Hopefully people will come to this same conclusion in the current debacle. I doubt it, but I’m still hopeful.
ReplyDeleteThat's what made me question Global Warming. I watched Gore's 'documentary' after my friends were scared straight.
ReplyDeleteAfter he said the devastation of Katrina was due to global warming, I knew he was lying. The hurricane was relatively weak when it made landfall. The dam break is what caused the tragedy. (a series of blatant lies followed)
I had to question, why would he lie? Which eventually led me to the truth. (the topic of another blog perhaps)
Obama acts like he didn't vote against fannie and freddie regulations.
ReplyDeleteDuring the election Obama actually criticized McCain for merely cosponsoring a regulatory bill and not being able to get it passed. Remember, Obama voted against it.
He blames Bush policies, yet names none of them. Another skeleton in his closet is his law career, suing banks (citi) for redlining because they weren't giving enough subprime loans.
He also voted for a bill that FORCED all deposit taking banks to buy x amount of mortgage backed securities that contained subprime loans.
The list goes on.
Health Care is another example. Government interference has killed all free market principles regarding health.
ReplyDeleteThe insurance industry creates the illusion of a free market. A blank check is not a free market principle. The ensuing calamity leads the charge towards pure Leftism or total government control of health care.
Anonymous, you are absolutely spot-on. Every problem we face has been brought upon us, not by the market, but the government. That is not to say that the players in the market always made the best decisions or acted ethically. But the problems began when government took steps to "correct" or prevent what some perceived as the failures of the market mechanism. Those fixes lead to even further errors which necessitated more government involvement. it becomes a vicious self-perpetuating circle of asininity.
ReplyDeleteIn most of Socialist Europe, the majority of GDP comes from government spending.
ReplyDeleteWe have a radical Socialist in office. Is this a surprise to anyone?
When you rely on the government for your livlihood, how will you cast your vote? Talk about self-perptuating.
There is a great quote by Sarkozy- "The idea that the market is always right is a crazy idea. Laissez-faire is over."
ReplyDeleteHe went on to say "The present crisis must incite us to refound capitalism on the basis of ethics and work … Self-regulation as a way of solving all problems is finished. Laissez-faire is finished. The all-powerful market that always knows best is finished." Scaaaaaary.
Even the pope is sticking his beak in. He says we need to end 'selfish capitalism.'
ReplyDeleteHow much bank is the Catholic Church sitting on while Catholics go hungry all over South America and Africa?
And what's more selfish than stealing from one man to give to another?
Thanks Anonymous! You just gave me another blog topic. The Catholic Church is one of the chief proponents of Socialism in the world, particularly in the Western hemisphere yet Catholics continue to wallow in misery while the Church basks in extravagance.
ReplyDeleteScarry indeed Pia. Sarkozy epitomizes the problem we face in re-educating the people on the facts of economics.
ReplyDeleteThe Catholic Church is also pro-illegal immigration as are all socialists.
ReplyDeleteThe overburdening of our social programs will force more radical socialist reforms. All justified or 'necessary' because we will be in a state of crisis.
It's a socialist theory that came from a professor at Columbia University where coincidentally Barack Obama attended. (I think the professor's name was Piven or something like that)
Here's a link to an article on the 'Cloward Piven Strategy.'
ReplyDeletehttp://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html
Go figure, it turns out these 2 professors were inspired by Saul Alinsky.