Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

31 January 2009

David Boaz - Making Work, Destroying Wealth

The Obama administration and his media backers with their bailout and public service projects seem to greatly admire John Maynard Keynes. Keynes essential theory was that the principal job of government is to create jobs and that this should be pursued maniacally without regard for the destruction of wealth. Boaz, agreeing with Jerry Jordan, says the real challenge for society is creating wealth.

He posted a note called "Making Work, Destroying Wealth" which is very instructive in telling how a number of economists through the last several centuries have pointed out the error of Keynes way of "thinking." Frederic Bastiat analyzed the near-sighted thinking with his famous broken window analysis as one early example.

Read the entire article and you will also find a quite amusing story about a businessman touring in China who comes upon a team of nearly 100 workers toiling on an earthen dam with shovels, who suggests that one man with a bulldozer could build the dam in a day. I have an image of thousands of ex-financial managers using the businessman's alternative tool to build infrastructure in America in the year 2011. I just hope those teams of workmen will include many from the financial community who sent campaign contributions to Obama. Unfortunately, he will give them better jobs in the expanded government or subsidized industries controled by government and the average taxpayer will be reduced to using the alternative tool to build infrastructure.

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