Monday, January 11, 2016

Have Hope: Our Opponents Are Economic Imbeciles. - by Gary North

I have never had a lot of patience. I suppose this is one of my character flaws.
I do not suffer fools lightly. I suppose this is another one of my character flaws.
I use strong rhetoric to deal with economic imbeciles. I do not regard this as one of my character flaws. I regard it as one of my strengths.

All around us are economic imbeciles. We find them in the major university economics departments. We find them on the financial media sites. We certainly find them in Congress. Above all, we find them on the Federal Open Market Committee. These people believe that a government committee, filled with tenured bureaucrats, is better equipped to solve economic problems than the competitive free market is, where people have their own money on the line.
They really are economic imbeciles. They may have IQ's that got them through college or graduate school. But, in their understanding of cause and effect, they are imbeciles. They do not understand that they are imbeciles. They preach to the choirs that surround them…….

If there were no built-in self-destruct arrangements in the very character, meaning moral character, of the institutions of organized theft, then I don't think we could win the battle. If it were simply a matter of good arguments driving out bad arguments, I don't think we could win this thing. Self-interest really is dominant. That is what economic analysis teaches, and I believe this principle.
But self-interest on behalf of organized theft is misplaced. Built into the creation, and built into the free market economy, are a series of poison pills. When individuals use violence or the threat of violence to interfere with market processes, they don't look at the long-term consequences of these interferences. Somewhere down the road, there is going to be hell to pay. There is going to be a great default. There is going to be something that disrupts the lives of those voters, as well as their victims, who vote in favor of the expansion of governments into the lives of citizens.
The defenders of organized theft deny that there are these built-in negative sanctions against any society that follows these practices, but, as I've said, the defenders are economic imbeciles……..

The Keynesians have no equivalent of this slogan: "There is no such thing as a free lunch." This is a powerful slogan. So is this one: "You can't get something for nothing." So is this one: "If it sounds too good to be true, it probably is." So is this one: "Honesty is the best policy." But, above all others, we have this one: "Thou shalt not steal."
The Keynesians have this slogan: "I'm from the government, and I'm here to help you." The entire case for Keynesianism is based on this slogan.
This is why it pays to defend freedom. Even when the overwhelming majority of voters do not want to hear the arguments, we should keep making them. We should keep pointing out that there will be horrendous negative repercussions for violations of the principle of voluntary exchange. We don't get a hearing, except during crises. I have good news. There will be plenty of crises in which we will get a hearing.