But what if they were millionaires?


Today my professor was teaching my class about Keynesian economics. I watched in awe as he drew graph after graph explaining how governments can eliminate recessions. Apparently when the Fed increases the money supply by 10% it means we completely avoid a recession and prices increase by 10%. But that price increase doesn’t hurt because everyone has 10% more money – money going exactly where it needs to is another perfectly reasonable assumption. Many Libertarians and other advocates of free markets will spend a huge amount of time explaining why Keynes’ theories don’t actually lead to economic success. I have spent a lot of my time pointing to terrible economic consequences of Keynesians running the show; however, I think that this focus misses the point. Even if a manipulative government outproduced a hands-off government would we want it?

History clearly shows that the freer the people, the more productive they are. But let’s assume that government meddling actually betters our economic standing. Even in this situation we wouldn’t want a big government. Assuming that you value your freedom and the idea of self ownership you still have to reject government intervention.

Economics should be secondary to liberty (your ability to act freely as long as you aren’t hurting someone else, or the protection from initiation of force). Who gives a fuck how prosperous you are if you can’t do the things you want to?

We shouldn’t even need to worry about the effects of government projects like Obamacare, TARP, or any other ‘stimulus package’. For example, the only thing we need to know about Obamacare is that it is the equivalent of Barack holding a gun to your ahead and saying, “you can (a) pay for my the healthcare program I’ve set for you, (b) get fined, or (c) if you don’t pay your fine, go to jail.” All we need to recognize is the effect these projects have on our freedom and the power of our government. As soon as we recognize that a government program takes away from even one person’s liberty we should immediately recognize that program as immoral. All other discussion about whether it will work or not doesn’t matter. Imagine if people voted for the politician who cared about their liberties instead of the politician who bribes them the most convincingly. We need to keep our eye on the prize – liberty.

When freedom is our focus all party lines melt away and only the one true issue is left standing.

… and we will see what school of economics is correct 🙂