Age Must Be Catching Up With Paul Volcker

(Austrian) Economics, Democracy, Humor, Vulgar Politics
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There’s no shame in Paul Volcker’s being confused. It’s common for men his age (82) to slip into an afternoon slumber and wake up discombobulated — it can take a little while to reorient. And that’s when the memory is working well; but, let’s face it, an elderly man’s memory isn’t always fully functional. So that’s why I think it’s only fair to cut the Chairman of the President’s Economic Recovery Advisory Board some slack for his comments yesterday when he announced that taxes were likely to rise in order to “tame” the deficit:

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday. Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said.

See, he has to be confused because my memory still works really, really well, and I remember this from the campaign:

Old “joke”: Know how you can tell if a politician is lying?

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Government Action Means Violence

(Austrian) Economics, Health Care
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The economy gained 162,000 jobs for the month of March and the President, of course, has attributed this success to his stimulus package. He was in Charlotte, North Carolina today discussing the economy at a manufacturing company that received $50 billion in stimulus money to expand one of its facilities and open another elsewhere in the State. Regarding the future of the economy, the President said:

Government can’t reverse the toll of this recession overnight, and government on its own can’t replace the 8 million jobs that have been lost….The true engine of job growth in this country has always been the private sector. What government can do is create the conditions…for companies to hire again.

Just how government can create these conditions for companies to hire again is left unsaid. I seriously doubt the nationalization of the banking sector and the government takeover of GM are favorable conditions for the private sector. In fact, if Robert Higgs is correct about regime uncertainty, these government actions create unfavorable circumstances for investors. Investors who are unsure that their private property rights are going to be respected in the future are loathe to invest in any long term-projects. If the government is willing to take over an entire sector of the economy by passing such legislation over a weekend, clearly investors would be fearful that the government might takeover any sector it wishes in the future. This lack of real investment means that there will be less jobs in the future and ultimately less consumer and producer goods. Our standard of living will fall. …

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Libertarians regressing to unsound, and thus, unfair Economics

(Austrian) Economics, Mercantilism, Protectionism, The Basics
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Capitalism (by George Reisman) There is a trend among young and “eternally rebel” types to try and conflate Capitalism and Interventionism and call the mix “Corporatism” at best or just call it “Capitalism.” This of course is not only a conceptual, but also an strategic mistake. …

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Nature’s Bounty (Thanks to Man)

(Austrian) Economics, Statism, The Basics
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In the silly but eminently watchable Travel Channel show, Man v. Food, host Adam Richman visits diners that provide food challenges — dishes so big or so pepper-hot that whoever manages to eat an entire one wins some kind of honor.  Imagine such a diversion during America’s (first) Great Depression.  In fact, it should ever be as Man v. Food paints it; the only famines recorded in the last several centuries have been the direct results of the activities of forcible governments.  Societies always, always can feed themselves abundantly and inexpensively in the absence of governmental wealth-destroying interference.  Watch for evidence of this in your own life while the American economy struggles to absorb the gargantuan economic “stimuli” and control-tightening measures instituted over the last, and the next, few years.

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Night Always Follows Day

(Austrian) Economics, Statism
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Logical Fallacy or Inevitability?

There’s an inevitability to the march of totalitarian economic control which Austrian School Economists have warned about repeatedly. There’s a tipping point which exists when a state interferes in an economy beyond which a state will invariably enact the same destructive policies which have collapsed the economies of other states which engaged in similar folly. This folly consists of practices such as debasing the currency, running up massive deficits and debt, and excessively regulating economic activity. (Note, of course, that for us anarchists all state regulation of economic activity is excessive; but, for my purposes here, we can limit the purview to the stifling, bureaucratic interferences like housing acts, forced lending to “sub-prime” borrowers, GSEs, mandates by the FDA and FTC and other three-letter economy-killers, etc.) What happens is simply this:

  1. Some economic “injustice” or “inequity” or “imbalance” (it almost always starts with those keywords, so be on the lookout) exists and is too upsetting to be tolerated.
  2. The state is used to enforce justice/equity/balance.
  3. These attempts to overthrow the laws of economics succeed only in creating new problems (“unintended consequences”) which then require further state action to attempt to alleviate.
  4. A slippery slope comes into play at this point, with each new state interference into the market creating new problems until everything the Austrian School economists warned of comes to pass.

So it should come as no surprise to anyone who’s been paying attention that the state is now making it very difficult (and painful) for people to escape the country with their assets (link goes to Zero Hedge) :

…

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