“[A] government can spend or invest only what it takes away from its citizens… its additional spending and investment curtails the citizens’ spending and investment to the full extent of its quantity.”
-Ludwig von Mises, Human Action, 4th ed., (Irvington-on-Hudson New York: Foundation for Economic Education, 1996 , p. 744.
Posted in Economics, Great Thinkers, Stimulus
Tagged bush, bush-obama, economic stimulus package, human action, ludwig von mises, mises, obama, Stimulus, stimulus package
Classic reductio ad absurdum.
Modern technology could easily grow oranges and grapes in hothouses in the arctic and subarctic countries. Everybody would call such a venture lunacy. But it is essentially the same to preserve the growing of cereals in rocky mountain valleys by tariffs and other devices of protectionism while elsewhere there is plenty of fallow fertile land. The difference is merely one of degree.
Ludwig von Mises, Human Action, p. 395.
Detractors of capitalism decry that it caters to special interests. The opposite is actually true. Just look at what’s happened in the last year.
Most of Wall Street came to government asking for a bailout when the government-created housing bubble popped.
The Big Three automakers also went to Washington for largesse when their customers came to prefer Toyotas and Hondas.
Health insurance companies stand to make a killing if Obamacare passes.
T. Boone Pickens and Al Gore would make millions from environmental legislation.
Ludwig von Mises explained the reason for all of this corrupt behavior with a single sentence back in 1949: “It is precisely the fact that the market does not respect vested interests that makes the people concerned ask for government interference.”
–Human Action, 4th Edition, p. 337.
Posted in Economics, Great Thinkers
Tagged al gore, auto bailout, bailout, chrysler, ford, gm, Health Care, housing bubble, human action, ludwig von mises, markets, obamacare, special interests, t. boone pickens, wall street