Posted tagged ‘Government Central Planning’

Must Reads For The Week 8/25/18

August 27, 2018

GOVERNMENT CENTRAL PLANNERS KNOW WHAT’S BEST

Chicago Hopes To “Solve” Record Pension Deficit With Creative Solution: More Debt, at zerohedge.com. Is it a good idea to use a new credit card to pay off your maxed out credit card? Paying off debt with more debt doesn’t work in the real world. Oh by the way, decisions by these same big government central planners are what caused the pension problem in the first place.

Walk Softly – Big Brother Wields A Big Stick, at theburnigplatform.com. Financially sinking State governments are making it difficult for residents to move out of their States. They are trying to escape these high taxes. Central planners must think you and I are permanent residents of their State.

DO THESE ARTICLES HAVE ANYTHING IN COMMON? Dem Congressional Candidate Has Spent Decades Pushing For Population Control, by Paul Bois, at dailywire.com. This central planner doesn’t understand that in order for the leftist ideology to survive you need a growing population to prop up the Ponzi scheme that is the our socialist welfare system. This idea couldn’t possibly lead to a different problem in the future, could it? Read this article. Uproar Over “Wacky” Plan To Start Baby Boom In China By Taxing Adults Under 40, at scmp.org. China had a one-child policy for four decades. It ended three years ago. This one-child policy has produced an aging population and a shrinking workforce. China needs more people to produce enough to prop up their communist Ponzi scheme. They are trying to incentivize individuals to have more children. They are doing this by subsidizing families who have more than one child with money taxed away from people under forty years old. Communist central planning created the problem they are now trying to solve.

San Francisco “Poop Patrollers” Make $185,000, at zerohedge.com. San Francisco’s central planners created the $#!++y mess they now have to clean up. Unfortunately they are cleaning up the symptom their previous economic policies produced. Economic central planning comes at a high cost that central planners ignore. Until they no longer can.

Ocasio-Cortez Claims Solidarity With Cab Drivers – While Campaign Buys Rides From Uber, at economicpolicyjournal.com. Please read Alexandria’s statements in this article. Now ask yourself; “Do I want this self avowed socialist central planner making policies about economic activity”? She doesn’t understand the basic law of supply and demand. And she graduated from Boston University College of Arts and Sciences with a bachelors degree in economics and international relations. I bet her economic ignorance says more about this college than it does about her.

CENTRAL PLANNING PRODUCING THESE PROBLEMS

South Africa’s Land Confiscation: Socialism By Another Name, by Ryan McMaken, at mises.org. Property rights not being protected leads to dire economic consequences. Allowing land to be confiscated and given away creates a couple of problems. 1) Three things needed for economic growth; investment, capital and entrepreneurship will decline if property right are not protected. A lower standard of living will follow. 2) The knowledge (human capital) the previous farmers had accumulated can’t be transferred to the new squatters. Agriculture production will decline. But once again government central planners know best.

“What A Disaster”: Chaos Returns To Venezuela One day After Massive Devaluation, at zerohedge.com. Decades of socialist central planning has put Venezuela in a position from which it can’t escape. Hyperinflation is being tried as a last resort. It won’t work. The economic situation in Venezuela is where government central planning of an economy eventually leads to if it is not stopped.

Destroying the Venezuelan economy has lead to migration problems for neighboring countries. Ecuador, Peru Tighten Entry Requirements For Venezuelans As Influx Swells, by Alexandera Valencia, at usnews.com. And this article.Brazil Deploys Troops To Venezuela Border After Migrant Chaos – “This Is Going To Turn Into War!” at zerohedge.com.

OTHER STUFF

The Big Self-Driving Car Problems: Artificial Intelligence Can’t Deal With Pedestrians, at economicpolicyjournal.com. When I told a friend of mine about a news article that was wondering why a self-driving car got into a wrecked. He said: “Seriously! Maybe it wrecked because no one was driving”. I have asked this question before; what do self-driving cars do when a deer runs across a four lane highway? This article brings up the same point about the unpredictable elements a self-driving car can’t be programmed to deal with. This is an example of why it is hard to centrally plan anything that involves human action. A self driving cars isn’t like a chemistry experiment where every element always act the same way. Also, what happens when the technology, which is created by flawed human beings, malfunctions. A driver has some options when his brakes fail. A self driving car has no options when the technology has a hiccup.

Instructor Tries To Quarantine Gun Owners In Back Of Class, by Frances Floresca, at campusreform.org. The good news is the university overruled the teaching assistant.

Some Inconvenient Gun Stats For Libs, at theburningplatform.com. The US is third in murders throughout the world. If you remove, Chicago, Detroit, Washington D.C, St Louis, and New Orleans the US is then 189th out of 193 countries in the entire world. What do these five cities have in common? Strict gun control laws.

Antifa Violently Attacks Man Holding Flag – Except He’s A Bernie Supporter, at zerohedge.com. No comment needed.

If Paul Manafort Is Going To Prison, Tony Podesta Should Be Joining Him, at zerohedge.com. Lady Justice has pulled off her blindfold. Now the only thing that matters is what side are you on. Are you part of the status quo or are trying to dismantle the status quo. In America today, does the rule of law exist?

Standards Go Out The Window As Employers Struggle To Fill Jobs, at zerohedge.com. There are more jobs than willing workers. Employers are overlooking previous requirements such as college degrees and work experience. At this moment anyone who is not employed probably isn’t a motivated worker. Most people today complain about receiving poor service from businesses. This makes my point because bad service usually means full employment.

Does A Fall In Unemployment Lead To Stronger Economic Growth? by Frank Shostak, at mises.org. More people being employed doesn’t lead to economic growth. Stronger economic growth leads to more employment. A job has to be a productive job for the economy to create wealth.  A job created by Government spending or a job created by Federal Reserve money printing destroys wealth.

REACTIONS TO TRUMPS TRADE POLICIES

I have been against Trumps tariffs because their cost is paid by your own citizens. Economic laws also tell us they hurt economic growth. I understand that Trump is trying to get countries to lower tariffs and trade restrictions by threatening them with corresponding tariffs and trade restrictions. This is a dangerous gambit.

Here is how I think Trump sees this situation. He thinks the U.S can take, lets say, thirty punches before it feels the pain. He also thinks that the EU, Mexico, Canada and China et al, can only take ten or fifteen punches before they feel the pain. He thinks these other countries also know this. He believes they will make concessions before real harm is done.

It is like a game of poker except he doesn’t bluff. I think these countries are beginning to understand Trump isn’t bluffing. A month ago the EU renegotiated some tariffs and trade restrictions. If you look at that along with these two articles: (China To Send Delegation For US Talks To Avert Trade War, at theguardian.com. and Trump Announces US-Mexico Trade Agreement As He Terminates NAFTA; Canada Left Out, at zerohedge.com.) He may be moving these countries off of their stances on tariffs and trade restrictions. I tip my hat if he pulls this off before the negative economic consequences take root.

CARTOONS from therightreasons.net.

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Must Reads For The Week 4/21/18

April 22, 2018

GOVERNMENT CENTRAL PLANNING DESTROYS COMPLEX SYSTEMS

Why Systems Fail, by Charles Hugh Smith, at oftwominds.    Excerpt from the article: 1) “Systems are accretions of structures and modifications laid down over time. Each layer adds complexity which is viewed at the time as a solution.”

“This benefits insiders, as their job security arises from the need to manage the added complexity. The new layer may also benefit an outside constituency that quickly becomes dependent on the new layer for income.”

“In short order, insiders and outsiders alike habituate to the higher complexity…….. Few people can visualize alternatives, and any alternative that reduces the budget, payroll or power…..is rejected as “unworkable.”

“In this set of incentives, the “solution” is always: we need more money. But increasing the budget can’t fix what’s broken….. As a result, new layers rarely replaces previous layers; the system becomes more and more inefficient and costly as every new layer must find workarounds and kludgy fixes to function with the legacy layers.

2) “The organization is incapable of instituting deep reforms due to organizational sclerosis…… The structure itself has lost the feedback loops and accountability needed to radically restructure a failing organization.”

These dynamics can manifest in both private-sector corporations and public-sector agencies….All of this contrasts with self-organizing networks which lack the hierarchy necessary for sclerosis, self-serving insiders and fatally blinded management. Since “this is the way the system works,” we have a hard time imagining how public agencies and corporations might be obsoleted by self-organizing, opt-in transparent rules-based networks.”

“Since failing systems are incapable of structural reform, collapse is the only way forward. Unfortunately collapse doesn’t guarantee success; if the rot is deep enough, the wherewithal to assemble a new more sustainable system may be lacking.”

EXAMPLES

Kentucky Teachers Want A Taxpayer Bailout, by Troy Vincent, at mises.org. Teachers unions and Government bureaucracies are examples of what is talked about above. Teachers unions are incentivized to get as much money for its constituency group as possible. That constituency is not the students it is the teachers. Politicians and bureaucrats cave in to these demands because the future fiscal problems that will arise, because of their decision, will be the problems for future politicians. And even if they are still in office, no one will remember that the previous decisions were responsible for the current fiscal problem. In this case the  feedback loop for politicians comes from the voters. But if voters are not informed enough to know what caused the problem, they can’t exercise their power. Ultimately voters will bear the fiscal burden of the decisions made by teachers unions and politicians. But voters have only themselves to blame for the problem because they were economically ignorant voters in the first place.

The War Between Public Pensioners And Tax Donkeys Is Heating Up, by Charles Hugh Smith, at oftwominds.com. Many State public pension systems are underfunded. Raising taxes is the only solution because we know the teachers unions will never give up anything. And politicians will always cave to the unions. Unfortunately someone will have to give something up. And that means tax payers will have to give up more of what they have produced. At some point this will come to an end. Because if you continue to consume more than you produce, at some point there will be nothing left.

US Budget Deficit Hits $600 Billion In 6 Months, As Spending On Interest Explodes, at zerohedge.com. And this: US Deficit To Soar Over 40% In 2019, Exceed $1 Trillion By 2020, at zerohedge.com. This debt is unsustainable. There will come a point where this debt can’t be paid off. We may have already passed the point of no return. Politicians and bureaucrats will never shrink the size of their fiefdoms, so collapse may be the only solution.

Californians Flee The State In Droves Over Taxation And Housing Costs, at zerohedge.com. Politicians have caused this problem. The solution is going to be forced on States like California when enough people leave. Where will the revenue come from when enough people leave. The scale will be tipped in the wrong direction. You can’t confiscate money from people who don’t exist.

Illegal Immigrants Shielded From University of California Out-Of-State Tuition Hike, by Keil Huber, at thecollegefix.com. If they are lucky they will spend more so the collapse can happen sooner.

LA Is Painting Some Of Its Streets White And The Reasons Why Are Pretty Cool, at cbsnews.com. Do the environmental crazies think there is no cost to their policies. $40,000 a mile adds up quickly. I hope this happens so California has to face economic reality sooner rather than later. It will be less costly.

Revealed: Mueller’s FBI Repeatedly Abused Prosecutorial Discretion, by Mollie Hemingway, at thefederalist.com. The legal system is important if a country is to function properly. But the rule of law has been in the process of breaking down for decades. When the rules don’t apply equally, and prosecutors are above the law, you no longer have a legal system.

What Attorney-Client Privilege?, by Andrew Napolitano, at lewrockwell.com. You may think this is OK because it is happening to Trump. But what is going to stop  prosecutors from doing this to you. Or rights are being trampled on. This is another example of the erosion of our the legal system.

More Hilarious Facts About Tesla From A Hedge Fund Shorting The Stock, at zerohedge.com. Government has been subsidizing the purchase of electric cars. This allows the waste of scarce resources to continue long after this waste would have been stopped under normal market conditions. Losses are just as important as profits in transmitting information to producers. Producers need to know what, and how much, to produce. When Government tries to pick winners, they usually fail miserable. And once again taxpayers get caught without a chair when the music stops.

WHERE SOLUTIONS COME FROM

Solutions Only Arise Outside The Status Quo, by Charles Hugh Smith, at oftwominds.com. Excerpt from the article: “…Institutions are fundamentally incapable of responding effectively or reforming themselves. The universal solution of failing institutions and hierarchies is throw more money at the failings in the doomed hope that doing more of what’s failed will magically solve the systemic problems. We see this dynamic in all the major public-private structures or our economy/society: Higher education (solution: make students borrow even more trillions, or have the government borrow more trillions); Healthcare (government needs to borrow more trillions), and national defense/security (government needs to borrow more trillions).”

“As a result, solutions are only possible outside these ossified, self-serving centralized hierarchies.”

“When faced with fiscal crises, central states/banks inevitably succumb to the temptation to print/borrow currency in whatever sums are needed to fill the shortfall of the moment. This….seems to be magic at first…..but eventually gravity takes hold and the currency’s purchasing power declines, as the real economy the production of goods and services) grows at rates far below the expansion of currency. Even the greatest empires in human history have been unable to resist the “easy” solution of devaluing currency…….

“Existing systems optimized for bygone eras and maximizing the security and wealth of insiders are doomed to fail…… Solutions will only arise outside the control and boundaries of existing systems, as all structural solutions threaten to obsolete or replace existing structures, displacing all the incumbents and insiders who benefit from the continuing failure of the institutions they manage and control.

Institutions like markets, money and law were created by spontaneous order. Government central planning did not create them. Since people don’t understand that these came about spontaneously, they also don’t understand that Government central planning has created all the problems with these institutions. Allowing solutions to come from the spontaneous order created by individuals making decisions, is the only way these problems can be solved. Government central planning can’t solve the problems it created, because it has no incentive to do so. Taking decision making power away from centralized Government, and returning it to individuals, is the only way this ends well.

LOVE “GOV”

July 22, 2015

LoveGov is a project by the Independent Institute. The short videos show the pitfalls of Alexis, an unrealistic college student, as she deals with her tyrannical oppressive boyfriend Scott “Gov” Govinsky.

This is well done, and funny. The guy playing Gov does a great job. But as you think about the problems Gov’s interventions cause Alexis, you begin to see your one-sided relationship with Big Government, and it is sobering to say the least.

LOVE GOV: FROM FIRST DATE TO MANDATE

More people have to understand that Government decision-making can’t possibly produce as good an outcome as the outcome created when individuals are allowed to make their own decisions. The quote by F. A. Hayek at the top of this blog says it all:

“The coordination of mens activities through central planning or through voluntary cooperation are roads going in very different directions, the first to serfdom and poverty the second to freedom and plenty.”

 

Related ArticleSpontaneous Order Utilizes More Knowledge Than Central Planning Could Ever Hope To Use, at austrianaddict.com.

Related ArticleSpontaneous Order More Complex Than Top Down Central Planning, at austrianaddict.com.

Related Article Spontaneous Order = Free Market Economy, at austrianaddict.com.