The failure of interventionism

Governmental intervention cannot improve the situation

Current policy responses to the recession are nothing but an attempt to preserve economic activity at levels and in places they were in the artificial bubble. They are doomed to failure - like trying to repeal the law of gravity by throwing things in the air. At best they prolong the day of reckoning until the current crop of politicians are retired on a pension - paid for by all the people they defrauded.

Unfortunately, the only cure for a recession is a recession. There is nothing government interventions can do to fix or improve the problem caused by its own re-distributionist interventions. This is because, if they could, we would have discovered a way to make real wealth out of thin air by passing laws or printing paper. It doesn’t exist. This is a matter of economic science, not “ideology”. We cannot make bread out of stones no matter what ideas we have.

It is important to understand that government’s power to inflate the money supply confers no net social benefit whatsoever. It is an engine of exploitation, privilege, and abuse, that is all. The original social injustice behind the greed of the boom that leads to the bust, is the greed of trying to get something for nothing by urging the government to take or sneak it from someone else - monetary policy.

Trying to re-distribute other people’s income and savings is not a solution: - it is what causes the problem in the first place.

In decrying the recession and its unemployment we should be condemning the ideology of economic interventionism that causes it. Governments are no more capable of managing the money supply than they are of managing the economy as a whole.