The train to Misesland

Peter Klein writes about the obvious, something that every honest person would admit is what is happening-

So, let me get this straight. We’re in a major recession triggered by a collapse in the housing market, itself the inevitable result of government policies, led by Fannie Mae and Freddie Mac, to get the wrong loans to the wrong people so they could buy the wrong houses. The Obama Administration’s remedy is not to let Fannie and Freddie die a long-overdue and merciful death, but to prop them up, to give them additional powers, and to subsidize private mortgage lenders who extend yet more credit to more borrowers who can’t pay it back, thus making what might have been a temporary misallocation of the housing stock into a permanent one. Brilliant!

He then goes on to write that its the irresponsible who are being rewarded while those people who lived within their means – renting, or only buying houses whose mortgage they could afford to pay – are being punished for the same. “These people are Bastiat’s unseen. For them, Obama’s housing plan is a giant slap in the face,” he says.

And there is a great comment on the post, by one such unseen-

In Quebec we have a Warren Buffet type of investor named Stephen Jarilowsky who, in a recent article, wrote about how the imprudents have caused pain to many. Being one who has always been an “unseen” all my life – 401K, money aside for children’s education, no credit card debt ever, owning a house I can afford to renovate – I’m beginning to feel robbed. Our supposedly right leaning conservative government has caved in to the opposition’s demand and will pour money in economy stimulating projects and plans a 80 billion deficit for the next three years. Like Xerxes’ messenger says in the movie 300 : This is madness !

Where do we take the train to Misesland ?

Unfortunately for him, and for every honest person out there, the train to Misesland has been hijacked by crooks like Bush, and Obama, and Brown, and Sarkozy and every politician in the world who survives merely because he has the ability to legally steal and hand over the spoils of the loot over to his constituency. I quote Bernard Shaw yet again-

“A government which robs Peter to pay Paul can always depend on the support of Paul.”

The Pauls have it. The Pauls have it.

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Comments

  • raveler  On February 21, 2009 at 5:43 am

    Thanks for an insightful blog.

  • despicable  On February 21, 2009 at 4:31 pm

    Everything everywhere from the beginning of time to the present day has a beginning and an ending, nothing lasts forever. Change is the only constant on our planet and in the universe. This being a proven fact of all that exists, I am persuaded to ask this question. …Why attempt to prevent necessary change from taking place? …Is it because of unscientific dogmatic bias? It is unscientific bias to hold onto that which no longer has relevance and has been rendered by the passage of time no longer useful, and consequently out of step with existing circumstances, situations and conditions. That which is no longer a positive influence inside the surroundings of our existence should be replaced by that which is a positive influence, … and it will always come to pass when the only change possible to take the place of that what exists, … is the diametric opposite of what already exists.

    The diametric opposite of an economy that is market oriented and not planned is an economy that is planned, … and designed to profit not individual capitalists of our planet, …but rather.. profit equally, all of the people of our planet, without discrimination or prejudice.

    What makes this economic change possible and necessary is the change in our means of producing goods and services. The technological revolution on our planet has made it possible to satisfy all of the needs of everyone everywhere on our planet. No one no longer needs to not have what is needed to live well and survive well because of our scientific and technological advances.

    Those that are concerned about our tanking individual unplanned capitalist economy, should give some thought to the opposite view of an economy that is social and planned so as to profit the mass of people in the world without discrimination or prejudice.

    • Aristotle The Geek  On February 21, 2009 at 5:00 pm

      # “Why attempt to prevent necessary change from taking place? …Is it because of unscientific dogmatic bias? It is unscientific bias to hold onto that which no longer has relevance and has been rendered by the passage of time no longer useful, and consequently out of step with existing circumstances, situations and conditions.”
      Why attempt to fight Hitler? The time for Nazism and the supremacy of the Aryan race had come, didn’t it? Anyone who says Nazism is the manifestation is pure evil is being dogmatic and his opposition is unscientific, isn’t it? Apparently the same is true for the good-natured social “experiments” of Mao and Stalin.

      # “That which is no longer a positive influence inside the surroundings of our existence should be replaced by that which is a positive influence”
      How do you know capitalism and the respect for individual and property rights is not a positive influence?

      # “The diametric opposite of an economy that is market oriented and not planned is an economy that is planned, … and designed to profit not individual capitalists of our planet, …but rather.. profit equally, all of the people of our planet, without discrimination or prejudice.”
      Define “profit.” And elaborate on how you would plan an economy where trillions of transactions take place every year based on the subjective calculation of millions of people. The Soviet way?

      # “What makes this economic change possible and necessary is the change in our means of producing goods and services. The technological revolution on our planet has made it possible to satisfy all of the needs of everyone everywhere on our planet.”
      The “economic change” didn’t appear from Aladdin’s lamp. Millions of people have slogged day and night over centuries culminating in the fact that you and me can sit at a computer and trade words. And the same goes for “the technological revolution.”

      # “Those that are concerned about our tanking individual unplanned capitalist economy, should give some thought to the opposite view of an economy that is social and planned so as to profit the mass of people in the world without discrimination or prejudice.”
      I am concerned about our tanking collectivist planned socialist economy smothered by government regulations, and therefore am advocating the opposite view – an economy that is individual and unplanned so that those who work get paid for their efforts, and those who don’t sit somewhere and cry to their heart’s content.

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