Sunday, April 20, 2008

Why Socialism Will Fail

I'm in Las Vegas for the next few days so posting will be about what it has been this past week. After all, there is gambling to be done and the fortune I've made from the blog ads here isn't going to spend itself.

In the meantime:

Of all places, you will find an important point in economics at the Huffington Post (it shows you how far the right has fallen when you won't find any mention of this at the Pajamas Media Right):

The Federal Reserve insists that "inter-connections" require rescuing large institutions that might knock down other entangled financial dominoes. However, these would not have been so cocky or so inter-connected in their web-spinning if the Fed had not allowed so much greed and gamesmanship for so long. Ex-Fed Chairman Alan Greenspan is often singled out as a culprit, but most of what he did was what most of the financial sector wanted. They, too, loved making 4th of July speeches about the glories of free enterprise and free -- market profits while counting on the government to collectivize the perils of risk. Big, fat and dumb financial institutions could count on being big, fat and bailed-out.

There was a time in the annals of American finance when this kind of practice would have been unacceptable -- indeed, serious economists like Joseph Schumpeter recognized that "creative destruction" was part of a vital capitalism. Painful as the depression of the early 1930s was, its creative destruction so revitalized U.S. finance and enterprise that by 1950, the U.S. economy was the kingpin of the post-World War Two world, vital and vibrant.

Wow, how come you never see any of this talk on on the economy on the Pajamas Media Right?

Because, as Justin Raimondo points out, the big government socialists ARE the Pajamas Media Right.

Pilfered from Lew Rockwell

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Conservative Belle said...

Interesting point. Our government is not asking us to make sacrifices for a successful war endeavor, like in the world wars. And they aren't willing to make the fiscal sacrifices either. And the Fed is a fiasco.

Janette said...

The Fed is a complete fiasco, we can agree on that. The question is, how the hell do we get rid of it?

Randolphus Maximus said...


There is a way that we could transition away from a central bank/fiat money system. The great economist FA Hayek suggested an easy transition: That would be to allow gold and silver as legal tender (as it's prescribed in the Constitution) by removing the taxes and fees that are currently in place that make dealing in gold and silver as legal tender cost prohibitive. It's not necessary for the dollar to immediately be pegged to a weight of gold, in fact, it would be unwise to do so for a number of reasons. But by allowing competition, a transition to a gold standard would not be traumatic.

Think of the way the dollar competes in the market internationally against the euro, or the yen or any number of other currencies. One thing that is wrong with our monetary system is that unless you are a supermodel like Giselle who can demand she gets paid in euros, an ordinary guy here in the United States doesn't have a choice in how they get paid. By removing the fees and taxes that are in place when dealing with gold and silver, then you can allow the ordinary guy a choice in what way they get paid for their services.

For further info, I would recommend Chapter 6 of Ron Paul's book "The Revolution: A Manifesto"