| Government
Planning
Both Democrats and Republicans claim that your life will be
better if you leave planning up to them and the bureaucracies they
will create.
- Search
the Whitehouse.gov website for examples of government
planning:
- You will find the following plans (as of February, 2008):
• "The President's plan
will make private health insurance more affordable."
• "implementation of the North American Pandemic
Influenza Plan"
[pdf]
• "The President's Plan
To Strengthen America's Energy Security"
• "The President's Emergency Plan
for AIDS Relief
• "Today, President Bush Discussed The Four Parts Of His
Practical Plan
To Confront High Gas Prices"
• "President Bush Announces Private-Sector Plan
To Help Struggling Homeowners
- Search the Democrats website:
- • Senate
Democrats' Katrina Relief Plan
• House
Democrats Have A Plan
- From the Democrat
Party Platform: [pdf]
- • "We have a
plan to build a strong, respected America: protecting our
people, rebuilding our alliances, and leading the way to a more
peaceful and prosperous world."
• "We have a plan
to build a strong, growing economy: creating good jobs, rewarding
hard work, and restoring fiscal discipline."
• "We have a plan
to help our people build strong, healthy families:
securing quality health care,
offering world-class education, and
ensuring clean air and water."
• "No strategy for American security is complete without
a plan to end America's dependence on Mideast oil. "
• "Even the Administration's own economists have found
that their energy plan will do nothing to reduce gas
prices"
• "Harnessing American ingenuity to create renewable
energy. Our plan begins with commonsense investments
to harness the natural world around us—the sun, wind, water,
geothermal and biomass sources, and a rich array of crops—to
create a new generation of affordable energy for the 21st
century. By mobilizing the amazing productivity of
America's farmers, we can grow our own cleaner-burning
fuel."
• "We offer America a new economic plan that will
put jobs first. We will renew American competitiveness, make
honest budget choices, and invest in our future."
• "A plan to reinvigorate manufacturing.
Manufacturing has lost 2.5 million jobs under President Bush in
its worst jobs crisis since the Depression. John Kerry, John
Edwards and the Democrats will launch a concerted effort to
revitalize American manufacturing. The measures outlined above
are important components of our overall strategy. In addition,
based on the model that has helped launch some of America's most
successful companies, we will establish new investment
corporations to give small and medium-sized businesses access to
capital. And we will support the growth of high-technology
"clusters" that invest in new industries around
research institutions."
- This is all nonsense. These government plans will never work.
They cannot work. Click
here to find out why. Or, read more from the Democrat Party
Platform:
- • "Promoting small businesses. Small businesses
and entrepreneurs are the lifeblood of our economy. We will
encourage small business growth with a plan to make it
easier for small businesses to secure capital and loans."
• "Through our jobs plan, we will bring hope and
jobs back to the cities and small towns devastated by the
shuttering of factories."
• "John Kerry, John Edwards and the Democratic Party
believe in a stronger, more prosperous America for all our
people. We believe in an America where the great American
promise of upward mobility is alive and well. We believe in an
America where the middle class is growing, our economy is
thriving, and America is strong. And we have a plan to
build that America."
• "The price of gas is at an all time-high, placing an
enormous burden on millions of Americans who have no choice but
to drive to work. We will help cut costs in the short-run by
halting additional stockpiling of oil reserves and working more
effectively to ensure that OPEC increases production. For the
long-run, we offer a detailed plan for energy
independence."
• "Cutting health care costs. At the center of our
efforts will be a plan to reduce health costs. "
Obviously there are many more "plans" in the Platform
that don't use the word "plan." Every area of your life is
being planned by misled bureaucrats in government. Click
here to find out why they are misled. |
Free
Market Planning
History has handed down a powerful verdict: government
planning does not work. In every case where the government
attempts to plan, it creates failure. In every case where it is
allowed to function freely, the Free Market produces miraculous
results of prosperity and liberty -- millions of business owners,
entrepreneurs, investors, consumers, non-profit and voluntary
associations pool their information together across spontaneous
networks of communication and cooperation, plan for their individual
futures, and raise the standard of living for all people, even the
poorest.
Every American should spend an hour learning why that claim is
historically true and inescapably rational. Here are some resources
to help make up for what government-planned schools neglected to
teach you:
- Why
Government Planning Always Fails by Randal O'Toole.
- We now know New Deal planning did more to prolong the
Depression than it did to end it. [proof
]
We know urban-renewal planning in the 1950s and 1960s displaced
more than a million, mostly black, low-income families from
their homes and turned some inner city neighborhoods into
bombed-out landscapes. [proof]
We know President Nixon's wage-and-price controls led to energy
shortages but didn't stop inflation. [proof ]
The
government is incapable of successfully executing a plan to achieve
the most simple goal. Consider the humble pencil. The President -- whether Clinton, Bush, or Obama --
does not know how to build a pencil. In fact, no human being knows
how to build a pencil. No committee of human beings could build a
pencil. The government could never build a pencil -- at the same
price the Free Market can build a pencil. Here
is a delightful essay on the pencil, with an introduction by
Nobel Prize-winning economist Milton Friedman. Every American should
read this essay before voting for a politician with a
"plan."
Millions of people are needed to make a pencil. Yet the vast
majority of them have no intention of creating a pencil. Lumber
mills aren't thinking about making you your pencil. A company that
makes yellow paint doesn't know about you or your desire for a
pencil. A million decision-makers are coordinated by "the
Invisible Hand" of the Free Market to bring you your pencil.
All of the hundreds of businesses and millions of people involved in
the making of a pencil are engaged in "economic planning"
to keep their businesses profitable. They keep track of inventory,
price fluctuations, forecasting, and make innumerable decisions
based on the information they acquire through trade publications,
the Wall Street Journal, and other sources. All of these
millions of business owners have more information available to them
than the government's economic planning board. They make decisions
every hour of every day, instead of waiting for a bureaucracy to make decisions
for them. And all of these people should be free to
make their own decisions about how to run their own businesses,
which, after all, are their own property. This is what America is
supposed to be all about: Liberty
Under God. Neither Democrats nor Republicans seem to understand
these most basic political and economic facts of life.
Many people feel that if the government doesn't plan things,
there will just be chaos and disorder. The forget that every
socialist nation has failed to prosper, and has left the people in
poverty and confusion. Prof. George Reisman explains why this is so
in his important text, Capitalism:
Division of
labor in the planning process is possible only under capitalism.
This is because of the existence of the price system, which
is unique to capitalism. [Under Socialism, prices are set by
government planners.] Under capitalism each individual plans his own
particular sphere of economic activity. But he plans on the basis of
a consideration of prices—the prices he will receive as a seller
and must pay as a buyer.
The
consideration of prices is what integrates and harmonizes the plans
of each individual with the plans of all other individuals and
produces a fully and rationally planned economic system under
capitalism. For example, a student changes his career plan from
actor to accountant when he contemplates the vast difference in
income he can expect to earn. A prospective home buyer changes his
plan concerning which neighborhood to live in when he compares house
prices in the different neighborhoods. And businesses change their
plans concerning product lines, methods and locations of production,
and every other aspect of their activities, in response to
profit-and-loss calculations.
All of these changes represent
the adjustment of the plans of particular individuals and
businesses to the plans of others in the economic system. For
it is the plans of others to purchase accounting services
rather than acting services that cause the higher income our student
can expect to earn as an accountant rather than as an actor. It is
the plans of others willing and able to pay more to live in
certain neighborhoods, and less to live in certain others, that
determine the relative house prices confronting our home buyer. It
is the plans of its prospective customers, of all competing
sellers of its goods, and of all other buyers of the means of
production it uses or otherwise depends on, that enter into the
formation of the prices determining the revenues and costs of any
business firm and thus what it finds profitable or unprofitable to
produce.
Now the fact that capitalism
even has economic planning, let alone the only possible kind
of rational economic planning, is almost completely unknown.
Practically everyone under capitalism has been in the position of Molière’s
M. Jourdan, who spoke prose all his life without ever knowing
it. The overwhelming majority of people have not realized that all
the thinking and planning about their economic activities that they
perform in their capacity as individuals actually is economic
planning. By the same token, the term “planning” has been
reserved for the feeble efforts of a comparative handful of
government officials, who, having prohibited the planning of
everyone else, presume to substitute their knowledge and
intelligence for the knowledge and intelligence of tens of millions,
and to call that planning. This is an incredible state of
affairs, one which implies the most enormous ignorance on the part
of the great majority of today’s intellectuals, from journalists
to professors.
[On the myth of government
economic planning, see Capitalism pp. 269-275. Read it here
for free [pdf].] |