Posted tagged ‘Free Markets vs. Government Central Planning’

Prosperity Comes From Free Markets Not Government Planning

January 26, 2017

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.



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

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

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


Must Reads For The Week 3/5/16

March 4, 2016

 Scientists Finally Admit Climate Models Are FAILING, by Michael Bastatasch, at The scientific climate models are showing something different than what has actually been observed over the last 20 years. Climate scientist Ed Hawkins stated, “Reality has deviated from our expectations – it is perfectly normal to try and understand this difference...” I bet Ed Hawkins will try to make reality fit his climate model.

Government Subsidies Will Erode Freedom Of The Press, by Jaana Woiceshyn, at Since newspaper subscription and advertising revenue is down, be ready for the newspapers to ask for a government bailout. As biased toward big government as the press is today, at least it is free to stumble onto the truth every once in a while. The press will never bite the hand that feeds them if they receive subsidies from the Federal government.

MSNBC Host Tries To Show Trump Is Racist, Segment Backfires, at Here is an example of journalism at its finest. The host fell into a pile of $#!+ and didn’t come out smelling like a rose.

The Two Party Illusion, at The republican party used to be the party that stood for free markets, while the democrat party stood for collectivism while trying to sell it as freedom. Now both parties stand for collectivism with the democrat party making no excuses that it is for socialism. What choice do people who believe in individual liberty and free markets have???????

Japan Sells 10Y bond At Negative Yield For First Time Ever, at What would you do if I offered to pay you $95 dollars in a year if you give me $100 dollars today? You would laugh at me, wouldn’t you? Japan is finding “investors” who will do this?

Bernie Sanders Criticizes The Fed For The Wrong Reasons, by C. Jay Engel, at Criticizing the Fed doesn’t mean your not a socialist. People who are for free markets think interest rates should be set by individuals interacting in the market. Bernie likes the fact that the Fed has the power to over ride market interest rates. He is just upset that the Fed chose to raise them.

Tell A Joke, Don’t Pass Go, Pay $200,000, by Gavin McInnis, at Free Speech vs. Political Correctness. Comedian taken to court because someone was offended by is joke.

A User’s Guide To Free Expression And Bathroom Sanity, by Ryan Anderson, at More PC insanity  coming to a public bathroom near your.

How Sweet It Is Maple Syrup Cartel Crumbles, by Joseph T. Salerno, at If a cartel raises prices too high or restricts supply, economic forces will eventually crush it. The maple syrup cartel has restricted supply which raised prices. The high prices brought in new producers who saw a chance to make a profit. OPEC is facing the same economic forces. Fracking is the new producer that is making OPEC sweat.

How Progress Occurs, at Government only gets in the way of progress. Individuals acting in free markets is where progress occurs. As George Gilder has said – “Socialist and totalitarian Governments are doomed to support the past, because creativity is unpredictable, it is also uncontrollable. If the politicians want to have central planning and command, they can not have dynamism and life. A managed economy is almost by definition a barren one.”

The Greatest Entitlement, by Jeff Deist, at Excerpt from the article: “The 20th century was the progressive century, marked by the rise of war and socialism as entrenched features of American life. But perhaps the most lasting effects will be felt in the entitlement mindset woven into the American psyche, via decades of successful incrementalism.

Social Security and Medicare in particular represent brilliant political achievements for American progressives. Both programs created a vast middle-class constituency, both programs are now thoroughly embraced by progressivism’s nominal opponents (conservatives), and both programs have become sacrosanct “rights” in the eyes of the public.

The hard work is just beginning. Changing minds takes a generation. We’ve only been at this for the last decade. We have a lot more work to do. One person at a time.