The much-discussed stimulus plan is one amazing piece of legislation. Has there ever been one single piece of legislation to rival it in its scope and cost? Some estimate its eventual cost to be $3 trillion.
There is something very backwards and contradictory about the mainstream Keynesian economic assumptions behind the bill: the government is somehow able to get us out of this mess.
Historically, governments do not run economies well. They do tragically poorly when trying to distribute resources equitably or justly. Just ask any who recall Khmer Rouge, Red China, North Korea, or the USSR. Each has a history of hundreds of thousands (in some cases tens of millions) of individuals starving to death as the government failed to distribute the simplest commodity, food, to individuals in need. If governments consistently fail to distribute food, a most basic necessity, to those in dire need, how can they distribute cash or capital necessary to jumpstart the economy again?
We can recall the source of these troubles: contrary to popular belief, the free market, as Thomas Woods’ latest book reminds us, is not the culprit, but government intervention is. How ironic that we allow those who got us into this mess (bureaucratic interventionists) to determine how to get us out.
The argument that something must be done is ludicrous: does heaping gasoline on a blazing fire help at all?
Far better to trust individuals acting freely to use their own resources as they see fit. Far better to follow the Austrian model and trust liberty, freedom, limited Constitutional government, non-interventionism (domestically and internationally) and the protection of individual rights (including private property rights). It is this model alone that predicted The Great Depression, the failure of socialism, and all other economic catastrophes, including the present one.
While most run to and fro wondering, “Why did this happen?” and “How do we get out of this?” we should trust those that have a proven record of understanding the problems associated with economic interventionism and the benefits of individual liberty.