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Henry's upside-down economics : Comments
By Alan Moran, published 27/5/2009The Treasury chief, Ken Henry, simply doesn't understand how the economy works.
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4. And also, the socialist belief system encourages a belief in something for nothing based on demonstrated falsehoods, fake moral superiority, and the use of force - the law.
The politicians don’t want to hear that they can’t make something out of nothing because 1. They believe they have the power to re-shape society at will, ignoring economic laws about the scarcity of resources
2. they have nothing else to offer but the violation of property rights, and so even if they understood that they can’t make something out of nothing, still they would and do deny it.
It is either simple ignorance, or deliberate dishonesty, to say that the problem is caused by a supposed mysterious “lack of” regulation. As a matter of science, the problem is not caused by a “lack of regulation”. Government currently confiscates about 40 percent of everything everyone produces every day and spends *the entirety of it* on regulations to force prices to some different level. This has perfectly predictable, scientifically known consequences: a privileged greedy boom, and then a depression with unemployment, bankruptcy, moral injustice and social chaos. No-one has ever refuted this.
The problem is caused by attempts at central government planning of the economy, which has *always* failed. Politicians and interventionists of all stripes keep on ignoring the economic science, that is all.
If you want science, predictability *and* a fair system, the solution is to abolish governmental control of the money supply, and all the privilege and injustice it spawns.