December 21, 2005
Some might think I mistrust or suggest Don Boudreaux is less than a good economist, but such is not true. The problem lies in the fact this Post is rather too sweeping in tone and content. A major Trade deficit is indication of malaise, and a debt of specific order. The debt is composed of misspent Labor resources, whether underutilized, underfunded, or undermanaged; all consisting of an economic existence which is bad.
Corporate managers do sacrifice long-run performance to ensure that their Pay Packages are always maintained, so Profits are maximized in the short-run. Prices and Wages are manipulated in order to direct Profits to arenas of personal benefit to the Corporate managers. Rare has been the government regulation ever been passed into law, except where Corporate managers have already shown deficiency of self-regulation. Government, itself, could do a far better job of protecting its Citizens against Violence; a true laudable goal of government.
More People does mean a greater draft of resources in economic supply of well-being support, and concentration of economic resources to supply of Toys for the Rich cost the greatest losses of Capitalization. Increased levels of well-being is the culprit here, with greater numbers joining Those to purchase these Toys provides an overall rise in Economic Costs. The advance of technology remains the only means to conserve overdrafted economic resources; We would fold drastically if the economic cost of individual support was as high as 30 years ago.
Democratic governments hold the probable worst record for allocation of Public funds for overall benefit of Citizens, but there is the downside; other forms of Government think to meddle with basic economic structures--far worse than democratic over-spending. The beast which is the Economy does act like an Individual, though more a spoiled child of schizophrenic character, as decentralized behavior destroys collective effort and common benefits. Government law reminds of the demands of Children, regrettably without the restraint of sensible Adults. It is fortunate Politicians do not understand the force of Economic and Financial law, the only control over Government existent in a democratic society.
By the way, this Author thinks the Boudreaux piece is quite good, but Students should know of the need for qualifications. lgl