ECONOMISTS: TAKE YOUR PICK.
Further to the posting of 19th. Sep. 'PLAYING WITH NUMBERS', which looked at the first of three programmes considering how the world should cope with the current economic disaster, hanging like a dark cloud, certainly over most of the western nations. We mentioned the coverage, by Stephanie Flanders, of John Maynard Keynes, whose philosophy, so beloved by the left, compared with the ultimate free marketeer, Friedrich Hayek, and finally, Karl Marx, with his fair shares for all communism.
Let us dismiss Marx immediately, since his philosophy has been proved to fail, as it gets hijacked by party officials indulging themselves at the expense of the proletariat. Hayek, however, always appears to me to be the most interesting. His theory, and all the various methods can only be theories, correctly insisted that governments cannot fix the market. Presumably, in a similar way, in building flood defences the water diverts to create havoc elsewhere. Probably another good analogy would be biologist William Donald Hamilton's view, that the more human nature does to keep itself alive, the sooner it will kill off the species. When areas are hit by hurricanes or tsunamis, it happens to be nature going through its normal routine. Therefore, why not let the anomalies in the market happen, to be 'taken on the chin'. Naturally it would cause immense problems for those concerned, but don't be kidded by the sticking plaster remedies, practised by various governments. They leave the tax payer with an even larger debt, which sooner or later has to be settled.
Flanders, in fairness, did give a reasonable assessment of all suggested solutions. However, as with all these so-called experts who fall into the left thinking group, a comfort zone if you wish, is convinced that Keynes was the man. Well he wasn't; if he were, the western nations would all be showing a surplus. For too long the West, in particular, has drifted along with this school of thinking, with a debt burden close to being overbearing. It acts as the ultimate credit card, which keeps people happy, allowing much 'head burying in the sand'.
TROUBLE IS BREWING.
Let us dismiss Marx immediately, since his philosophy has been proved to fail, as it gets hijacked by party officials indulging themselves at the expense of the proletariat. Hayek, however, always appears to me to be the most interesting. His theory, and all the various methods can only be theories, correctly insisted that governments cannot fix the market. Presumably, in a similar way, in building flood defences the water diverts to create havoc elsewhere. Probably another good analogy would be biologist William Donald Hamilton's view, that the more human nature does to keep itself alive, the sooner it will kill off the species. When areas are hit by hurricanes or tsunamis, it happens to be nature going through its normal routine. Therefore, why not let the anomalies in the market happen, to be 'taken on the chin'. Naturally it would cause immense problems for those concerned, but don't be kidded by the sticking plaster remedies, practised by various governments. They leave the tax payer with an even larger debt, which sooner or later has to be settled.
Flanders, in fairness, did give a reasonable assessment of all suggested solutions. However, as with all these so-called experts who fall into the left thinking group, a comfort zone if you wish, is convinced that Keynes was the man. Well he wasn't; if he were, the western nations would all be showing a surplus. For too long the West, in particular, has drifted along with this school of thinking, with a debt burden close to being overbearing. It acts as the ultimate credit card, which keeps people happy, allowing much 'head burying in the sand'.
TROUBLE IS BREWING.
posted by minister | 11:42
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