"The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it."
Adam Smith (1723 - 1790)
This 18th-century quote is perfectly applicable today!
Note the word "capitals." Capital is one of the factors of production, which are defined as land, labor, capital and entrepreneurs.
If production is desired, if economic growth is to be achieved, the factors of production must be employed, or allowed to be employed, to be able to PRODUCE!
For any gubment, or anyone in gubment, to decide that it is possible to direct the private sector's economic activities is simply impossible. It's impossible!
As Adam Smith says,
Invisible hands don't trample.
Post a Comment