This op-ed from Walter Williams comes the same week that the World Bank has proclaimed publicly that it “will end extreme poverty by 2030.” If the institution wants to end such human desperation it would be wise to encourage the rule of law and free markets (and free prices).
I think that it’s funny that David Stockman, Ronald Reagan’s former budget chief, starts his column with this sentence:
“This morning’s market is more erratic than Claire Danes off her lithium.”
Seems a little gratuitously mean. Accurate (?) perhaps but mean. But that is one of the things we like about the guy. His acid.
Of course some people who clearly do not understand what makes a market, nor why the market mechanism drives down costs and increases quality of life for everyday people will argue that markets are evil because, well, because they’ve been told all their lives that markets are evil.
If the GOP was seen as a party of genuine free enterprise (I know, don’t laugh), which made the case to all people that free markets and free prices generate prosperity and that government intervention and cronyism lead to stagnation and despair, the party could make serious progress with non-white voters.
We are regulating our economy to death. One of the main reasons why there is an increasing disparity in wealth in this country is that the crony class is wrapping the middle class and the merchant class – the entrepreneurial class – in red tape. Pay a tax here. Pay a fee there. Do you have a license to do that? It is harder and harder to build a business – something which is plenty hard to do without the crushing weight of the state.
This fundamentally has been the bet of traders of all kinds for the past 3 1/2 years or so. If things get too bad in the markets the Federal Reserve will come to the rescue. The belief is that the Fed is bigger than the market. That come what may the shamans can offer a “wink and a nod” and all will be well. That is what these guys think they saw today.
This video is from March of 2012 at the Mises Institute. In it Hunter explains why it is that the current economic regime is fundamentally corrupt and what to do about the situation.
You bet there is. It’s what we are fighting for. An economic system based on real prices, open markets, and sound money would serve the world so much better than the centrally planned, top down, command and control, fiat money system we must now endure.
Being “pro-market” means being pro-innovation, pro-competition, pro-transparency, pro-rule of law, pro-hard work, pro-efficiency. Being “pro-business” can on occasion mean these things also but typically it does not.
Truly it will not end well if people keep buying into the simple minded notion that the government is somehow their friend. That the state will mete out justice on behalf of the “people.” That somehow by expanding the power of the politicians life will be made better.
The government is to be tolerated. There are things it must do. But it is not your friend unless you are in the political class. Most of us are not.
We’ve said it many times here, and many others have said it before us in other places. Free markets are not typically the friend of big corporations with lots of market share, money, and friends in government. These companies are already fat and happy. Free markets and free prices allow new challengers to enter the marketplace. This brings prices down and quality up. Not what the fat firms want.
Chapter 30 of Hunter Lewis’s New Book
Capitalism is dynamic. It is ever changing. The freer it is the better it serves the “market”, also known as “people.” If innovation is allowed to happen. If new ideas can blossom, good things happen for society. Jobs are created. We move forward and life gets better.
DIY. DIY. DIY.
Once the state gets out of the way people can start finding solutions to everyday problems which were once thought only the purview of the government.
In one respect Marx was right. Economies do evolve. They do develop. But absent the religion of the “state” economies tend to evolve toward solutions. That’s what markets are all about.