Government Planning Is Killing the Economy

Friedrich Hayek warned more than half a century ago that central planning doesn't work. Here’s why:

  • Central Planners (government) makes a plan
  • The plan includes specific expectations
  • The expectations are never, ever, realized
  • A “crisis” ensues
  • So the planners demand more control
  • And create more plans
  • Ad hoc
  • Willy nilly
  • Capriciously
  • So you must wait for things to settle down to make your decision

Today’s Wall Street Journal article about the fiscal cliff demonstrates the futility of central planning:

"We're all sitting on the sidelines right now wondering what's going to happen to us," said John Odland, chief financial officer at MacMillan-Piper Inc., a freight-transport firm in Seattle. "A lot of my contemporaries are feeling the same way, saying, 'Let's just wait and see what these knuckleheads do.' "

Why should private, free citizens have to wait on government for anything?

Here’s a better solution: get the damn government out of the economic planning business.

It’s true that individuals are no better at planning than government experts. But they’re no worse, either.  The difference, then, is the number of people affected by a plan that doesn’t work.

If Joe Shit the Ragman’s plan for his business or his family or his vacation fails, who’s affected?  Joe, maybe his wife, maybe his employees. And it stops there.

If Barack Obama’s plan or Ben Bernanke’s plan or Tiny Tim Geithner’s plan for the economy fails, who’s affected?  All of us.

Moreover, if Joe’s plan fails, it’s up to him and him alone to sacrifice while a better plan takes shape for him and is family.

But if a government plan fails, the government invents new powers, which always come at the expense of your personal power, new taxes, and new plans. From the same WSJ article:

Each scenario involves prolonged uncertainty. Most consumers would start to pare their spending after receiving smaller paychecks due to higher payroll-tax withholding. Income-tax refunds for 2012 could be delayed while the Internal Revenue Service programs its computers to account for tax changes. Government agencies could start cutting back, hurting employees and suppliers. Many other employers likely would slow hiring or cut jobs. And investors could eventually look at those risks and send stocks lower, threatening a downward spiral in consumer and business spending.

We are throw more than good money after bad; we are throwing away good lives after bad.

The only solution to the fiscal cliff problem is to STOP CENTRAL PLANNING, restore power to individuals to make decisions, and reinvigorate a sense of community so people are more likely to help their neighbors.

Socialism Sucks. Here’s How to Avoid It In America

Some of the “cool” kids say they like socialism. Of course they have no emotional clue what socialism is.

nationalsocialism

Maybe they’ve read about socialism, seen the movies, and heard about it from their college professors—ya know, like the one who actually visited the old Soviet Union.

But those sources give only an intellectual view of socialism. You can’t actually feel it. And life, in the end, is about feelings. 

Don’t believe me? Everything you do is an attempt to feel pleasure or avoid feeling pain. But that’s fodder for another blog. This one’s about the evil of socialism.

Here’s what life is like in a socialist country, told by someone who lived it, Thomas  Peterffy. He escaped Hungary during the Cold War. And he’s spending his money to make sure it doesn’t happen in America.

[youtube http://www.youtube.com/watch?v=N2QtDExs6lM]

Misery Has Company

Like Peterffy, Friedrich Hayek lived under socialism—National Socialism. His message in The Road to Serfdom is similar:
Hayek’s warning is clear. He couldn’t be accused of insanity for describing how socialism, once begun, must end with death camps and gas chambers.

In the democracies at present, many who sincerely hate all of Nazism’s manifestations are working for ideals whose realization would lead straight to the abhorred tyranny,” he wrote.

In socialist Italy today, six scientists were convicted of a felony for failing to predict an earthquake—which is impossible. Hayek was right. And he predicted such tyranny.

Socialism Will Make You Evil

Hayek goes on:

To be a useful assistant in the running of a totalitarian state, therefore, a man must be prepared to break every moral rule he has ever known if this seems necessary to achieve the end set for him. Neither the Gestapo nor the administration of a concentration camp, neither the Ministry of Propaganda nor the SA or SS (or their Russian counterparts) are suitable places for the exercise of humanitarian feelings. Yet it is through such positions that the road to the highest positions in totalitarian state leads.

Hayek explains that the need for evil arises from the nature of totalitarianism—socialism, National Socialism, communism.

Collectivism means an end to the truth. To make a totalitarian system function efficiently it is not enough that everybody should be forced to work for the ends selected by those in control; it is essential that the people should come to regard those ends as their own. This is brought about by propaganda and by complete control of all sources of information.

Which Explain Benghazi

The Obama administration attempted to propagandize the Benghazi Massacre because totalitarians can’t be seen as wrong in the eyes of the serfs. Obama wanted you to believe that a YouTube video caused Ambassador Stevens’ death, Obama wanted to blind you to his own incompetence.

Ask yourself why the Obama administration wants complete control of the internet. Ask yourself why the Obama administration wants complete control of medicine. Ask yourself why we would tolerate such a totalitarian regime in America.

But before you answer that last question, you must ask yourself this: why did good people in Germany, Italy, Hungary, Spain, Austria, and many other countries tolerate the evils of socialism in the 20th century?

Perhaps because it was fed to them to bite-sized chunks under the guise of “efficiency” and “fair share.”

Vote With Your Vote

Right now, we have a simple prescription: vote.

Barack Obama’s life and language are festooned—if not infiltrated—with collectivism, socialism, redistribution. He believes the world is owed everyone’s fair share. Barack Obama has accumulated power, not just in Washington, but in his own hands.

Mitt Romney believes in the America we’ve always believed in. He is a leader who succeeded in business. Romney might not roll back the decades of decline in individual liberty, but he will at least interrupt our trip down the road to serfdom.

Note: The originally published version of this blog was draft. I forgot to push the Publish button after making some edits.