Jim Hlavac
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Economic Theory
| Economic Theory |
The history of economics is rather simple: Throughout time all
people have endeavored to make the most profits from whatever it was
that they were doing. It was only governments that impeded this.
Economic history is really divided into two parts. There is the controlled
economies that prevailed from the dawn of time until even today, over
most of the world, and there is the United States free market economy,
now under attack. Governments throughout history have perversely
inhibited economic activity in the bizarre belief that you can help people
by prohibiting them from doing what they want to do. But at the core,
economics is math. And that math is ineluctable. Whatever you put in,
you want a little more coming out. To not do so is to fail economically.
Only governments interfere with this reality, and they do so not
based on economic reasoning, despite all claims to the contrary. They do
so because of some preconceived notion of emotion, faith, belief and idea
that are based on the vagaries of the imaginations of the powerful. But
prohibiting economic activity cannot result in more of it. Legislating
against the free actions of entrepreneurs of whatever type cannot create
more of it. Moving money from one group to another cannot create an
economy or growth. There is nothing, in fact, that governments can do
actively to help an economy, except get out of the way. If the government
tries to help on group over another, then they are merely picking winners
and losers based on power, not on math. That governments do this today
under all manner of newly or recently named theories does not eliminate
the fact that they are doing exactly what ancient kings were doing. Do not
let the new words confuse the core reality.
The government cannot help an economy by deciding what is best
for it. They can only help an economy by letting it function by its own
whims. There is more than ample evidence that the freer the political
situation, the more economy there will be, and the freer the economy the
more there will be more richer people and more happy and satisfied
people. Conversely, the more rules, regulations, requirements and
prohibitions there are in a vain attempt to grow an economy, or
determine the best outcomes, will only result in the opposite of what is
desired, or claimed to be desired. And the reason that governments
throughout history have sought to limit economy is that richer people
require less government interference, and that means that the power mad
would have less power, and that they cannot abide. They did not abide it
1000 years ago, or 2000 years ago, or 20 years ago. Nor today, but
instead they are seeking power for their own gain. For they know that
thievery and thuggery are good business for governments, but lousy for
everyone else. But all the so called compassion of a meddling government
will always result in a lessening of the amount of resources and
opportunities to provide the vaunted compassion they claim is their goal.
But what government claims is in direct opposition to what it achieves,
but power is such a draw that government doesn't care if people are
worse off, so long as the powerful stay in power.
Throughout history, economics has been the same. People have
wanted to buy and sell, import and export, build and grow, exactly as
they themselves think best for them. The math of 5000 years ago is
exactly the same. So long as less inputs were deployed to get more gain
then it worked. If the equation is turned upside down, then it did not.
Governments, throughout history have attempted to turn the math upside
down. In the process the government made life very comfortable for
those who had power in government while making life less comfortable
for those who were engaged in economic activity. It is irrelevant at what
point in history, or in which culture, or in which race or language group,
nor in which society or nation, the more government, the less economic
activity. The more prohibitions, rules, taxes, requirements, and other
impacts the poorer the economy. Yet, still today there are those who
would disagree with these fundamental truths, and they thus imperil the
nation that they claim they lead. But leadership is more about letting
people do what they want and adjudicating any disputes than it is about
limiting the economic activity of people. Limiting people is not leadership,
it is oppression, and you cannot not lead those whom you oppress.
people have endeavored to make the most profits from whatever it was
that they were doing. It was only governments that impeded this.
Economic history is really divided into two parts. There is the controlled
economies that prevailed from the dawn of time until even today, over
most of the world, and there is the United States free market economy,
now under attack. Governments throughout history have perversely
inhibited economic activity in the bizarre belief that you can help people
by prohibiting them from doing what they want to do. But at the core,
economics is math. And that math is ineluctable. Whatever you put in,
you want a little more coming out. To not do so is to fail economically.
Only governments interfere with this reality, and they do so not
based on economic reasoning, despite all claims to the contrary. They do
so because of some preconceived notion of emotion, faith, belief and idea
that are based on the vagaries of the imaginations of the powerful. But
prohibiting economic activity cannot result in more of it. Legislating
against the free actions of entrepreneurs of whatever type cannot create
more of it. Moving money from one group to another cannot create an
economy or growth. There is nothing, in fact, that governments can do
actively to help an economy, except get out of the way. If the government
tries to help on group over another, then they are merely picking winners
and losers based on power, not on math. That governments do this today
under all manner of newly or recently named theories does not eliminate
the fact that they are doing exactly what ancient kings were doing. Do not
let the new words confuse the core reality.
The government cannot help an economy by deciding what is best
for it. They can only help an economy by letting it function by its own
whims. There is more than ample evidence that the freer the political
situation, the more economy there will be, and the freer the economy the
more there will be more richer people and more happy and satisfied
people. Conversely, the more rules, regulations, requirements and
prohibitions there are in a vain attempt to grow an economy, or
determine the best outcomes, will only result in the opposite of what is
desired, or claimed to be desired. And the reason that governments
throughout history have sought to limit economy is that richer people
require less government interference, and that means that the power mad
would have less power, and that they cannot abide. They did not abide it
1000 years ago, or 2000 years ago, or 20 years ago. Nor today, but
instead they are seeking power for their own gain. For they know that
thievery and thuggery are good business for governments, but lousy for
everyone else. But all the so called compassion of a meddling government
will always result in a lessening of the amount of resources and
opportunities to provide the vaunted compassion they claim is their goal.
But what government claims is in direct opposition to what it achieves,
but power is such a draw that government doesn't care if people are
worse off, so long as the powerful stay in power.
Throughout history, economics has been the same. People have
wanted to buy and sell, import and export, build and grow, exactly as
they themselves think best for them. The math of 5000 years ago is
exactly the same. So long as less inputs were deployed to get more gain
then it worked. If the equation is turned upside down, then it did not.
Governments, throughout history have attempted to turn the math upside
down. In the process the government made life very comfortable for
those who had power in government while making life less comfortable
for those who were engaged in economic activity. It is irrelevant at what
point in history, or in which culture, or in which race or language group,
nor in which society or nation, the more government, the less economic
activity. The more prohibitions, rules, taxes, requirements, and other
impacts the poorer the economy. Yet, still today there are those who
would disagree with these fundamental truths, and they thus imperil the
nation that they claim they lead. But leadership is more about letting
people do what they want and adjudicating any disputes than it is about
limiting the economic activity of people. Limiting people is not leadership,
it is oppression, and you cannot not lead those whom you oppress.