Right Premises, Wrong Conclusions

I have noticed that many people can name the problems that we as a society face and how they are or will lead to a disaster. The conclusions of how the problem was created or will be solved, on the other hand, is typically incorrect. Generally, non-economists believe that many of these problems are caused by free markets and will be solved best by government. The irony of course is that many fail to realize that the problems we face are often thanks to the government, which the average joe now wishes to solve the problem – while the problems simultaneously exist not due to the free market, but are best solved by it. People have it exactly reversed.

Here are most of those conclusions, conclusions the dominant political ideology holds that should be avoided:

1. If a social or economic problem seems to exist, the state should impose regulation to remedy it.
2. If regulation has already been imposed, it should be made more expansive and severe.
3. If an economic recession occurs, the state should adopt “stimulus” programs by actively employing the state’s fiscal and monetary powers.
4. If the recession persists despite the state’s adoption of “stimulus” programs, the state should increase the size of these programs.
5. If long-term economic growth seems to be too slow to satisfy powerful people’s standard of performance, the state should intervene to accelerate the rate of growth by making “investments” in infrastructure, health, education, and technological advance.
6. If the state was already making such “investments,” it should make even more of them.
7. Taxes on “the rich” should be increased during a recession, to reduce the government’s budget deficit.
8. Taxes on “the rich” should also be increased during a business expansion, to ensure that they pay their “fair share” (that is, the great bulk) of total taxes and to reduce the government’s budget deficit.
9. If progressives perceive a “market failure” of any kind, the state should intervene in whatever way promises to create Nirvana.
10. If Nirvana has not resulted from past and current interventions, the state should increase its intervention until Nirvana is reached.

There will never be enough government at the pace we are growing today. Even Paul Ryan’s cuts, which have been labeled as everything short of killing off the old and poor, only cut the GROWTH of government by a certain percentage – they do not cut the overall size. Will it ever end?

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