Prosperity Comes From Free Markets Not Government Planning

Thomas Sowell said: “The first rule of economics is scarcity. There is not enough to satisfy what everyone desires. The first rule of politics is to ignore the first rule of economics“. When individuals are free to decide what to produce, consume, exchange and save according to their subjective valuations, inside this world of scarcity, the result is a higher standard of living with the least amount of waste and a high degree of individual want satisfaction. Government economic planning creates a lower standard of living with a high amount of waste and a low degree of individual want satisfaction.

Here is a video from Prager University (click here) giving some examples of why free markets are better than Government planning.

 

TRUMP’S MARKET INTERVENTIONS

We should be pushing back when Trump talks about trade barriers, to save or bring back ‘American’ jobs, and infrastructure spending. These are government interventions into the free market and we know what the results will be: 1) an over all lower standard of living, 2) a waste of resources, labor, time and capital, 3) less want satisfaction.

Tariffs save some jobs at the cost of higher prices for consumers. The money used by consumers to pay the higher prices can’t be used in other areas of commerce. This ultimately means more net jobs are lost than saved by tariffs. Unfortunately the jobs saved are seen and the jobs lost are unseen as Bastiat wrote about in the 1800′s.

Every dollar “invested” by Government is first taken from the private sector. In other words the individuals subjective value on how to he will use what he has produced, is replaced by the subjective valuations of bureaucrats on how they will use what they didn’t produce. What happened to all the infrastructure spending in Obama’s $900 billion ‘American Recovery and Reinvestment Act’ of 2009? Remember Obama saying, “Shovel ready was not as shovel ready as we expected.”

 

Related ArticleLOVE  “GOV”, at austrianaddict.com.

Related ArticlePrivate Property vs. Collective Ownership: One Deals With Scarcity Better Than The Other, at austrianaddict.com.

Related Article – ‘CAR WARS’ Return Of The Jitneys, at austrianaddict.com.

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