Posted tagged ‘Hayek vs. Keynes’

A Look Over The Horizon At What Lies Ahead If We Continue Down The Central Planning Road.

February 8, 2013
Nebraska tornado, May 24, 2004 (DI02257) Photo...

Nebraska tornado, May 24, 2004 (DI02257) Photo by Bob Henson (Photo credit: AtmosNews – NCAR & UCAR)

Read this article titled, Greek Tax Hikes Backfire As Tax Revenues Plunge 16%, at Zerohedge.com, if you want to see what will happen in the U.S. if we continue to make economic decisions through the political process.

CENTRAL PLANNERS IGNORE THE FIRST RULE OF ECONOMICS

No matter how hard Government and politicians try to create a world of abundance, the reality that we live in a world of scarcity hits them square in the face. Their answer when their plans don’t work as advertised, is to ignore the reality of the first rule of economics, which is scarcity, and continue going ever faster down the same central planning road that created the problem in the first place.

CENTRAL PLANNERS WORK AGAINST ECONOMIC FORCES

As a Government starts its intervention, slowly at first, into the workings of the free market through regulation, and taxes, the economy will reach a point where it will not (more…)