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Why Economic Policymakers Make Big Mistakes:

m.knox

Well-Known Member
Gold Member
Aug 20, 2003
127,423
86,606
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They Think Economies Are Machines

LOL - leftwing central planning types think one can control individual free will, and when they can't control it, they will try to legislate to compel behavior through the threat of force or penalty. Nice folks these left wingers are.....

http://www.forbes.com/sites/stevefo...g-mistakes-they-think-economies-are-machines/


ONE OF THE MOST pernicious ideas polluting economic understanding–and policymaking–is that an economy is a mechanism, like an automobile, a train or a power plant. Commentary is littered with such phrases as the economy “is overheating” or “needs to cool off” or “is tired” or “needs a jolt” or “could use some stimulus.”

These aren’t harmless metaphors. They epitomize how economists have taught us to see an economy–as something that can be manipulated, guided or driven. They believe the steering is to be done by government, making sure an economy “hums” along at an even speed, going neither too fast (hot) nor too slow (cold).

It’s all preposterous. The result is interventionist government policies that do harm–the only question is, how much? Economies aren’t machines. As Forbes.com colleague John Tamny–author of this year’s groundbreaking book Popular Economics (Regnery)–and other enlightened observers never tire of explaining, economies are a collection of individuals, working singly or in organizations. You can add up–or at least try to–what they turn out, in terms of products and services. But that hardly means you can control what all these people–billions of them!–are going to do.
 
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