Tuesday, April 15, 2014

That Is Anti Free Enterprise

"By substituting the judgment of bureaucrats and political interests for the private knowledge of millions of entrepreneurs seeking the most productive use of labor and capital, government mis-allocates scarce resources that would be better spent increasing private-sector productivity - and along with it private incomes."

Jason Lewis

Why is that?  In an economy, what allocates scarce resources?


If you fool with the market, you fool with prices. 
If you fool with prices you fool with the allocation of scarce resources.
If you fool with the allocation of scarce resources you screw up and weaken the economy.


Why is gubment so very, very good at screwing up the economy?  (And that is one of the exceptionally few things any gubment is good at...) 

Because bureaucrats, councils, legislative bodies, lobbyists, indeed, any and all of the Wizards Of Wonderfully Smart cannot possibly know of or understand the gabillions of interactions that take place, all of the international connections that take place, all of the motivations and desires that take place to make even the most insignificant product on the market come TO the market!

Such bureaucrat information is limited only to the small political interest that small Wizard Of Wonderfully Smart has in mind.

Only the market is smart enough to do that.

The word "judgment" used in the quote above is used VERY loosely.

So, Jason Lewis is saying that the factors of production in any economy are more effectively and efficiently employed by private sector individual and business interests.  Is that true?

Well, certainly!  There is no political motivation when one retains monies to employ in productive activity.  That is done in self interest!  Those monies are put at risk, with hopes and desires on the line.  That risk, hope and desire contributes to the economy, and to the whole!

When someone's money is "used" by any bureaucrat, there is no risk.  There is no individual hope on the line.  It contributes to what the bureaucrat wants it to.  It's some other person's money!  The bureaucrat throws the money out there and looks to get more!

They are looking for private incomes!


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