Libertarians in Thailand

Promoting Freedom in an Authoritarian nation

‘Tooth Fairy Economics’

Over at Campaign For Liberty Tom Woods has written a piece called ‘Tooth Fairy Economics‘ (found via), regarding the misconception that the governments involvement by ‘boosting’ the economy using stimulus packages would be a good thing or could be done so any without negative effects on other parts of the economy.

If there’s one silver lining to the crisis, it’s that more and more people are figuring out that so-called respectable opinion has been dead wrong, and for a long time. The economics profession, by and large, has embarrassed itself with a Keynesianism so crude it would not satisfy a bright sixth-grader. People trotted out as experts, who failed to see the crisis coming and have no idea how it occurred — “excessive risk-taking!” they say, in a non-explanation that merely begs the question — have no idea how to solve it.

The piece is a well worth read, especially in these days when the Democrats here in Thailand thinks it is a good idea to lend huge amount of money. And at the same time adopt the populist ideas of Thaksin of short-term thinking (vote-buying) with counter-productive handouts, now by give a small one-time paycheck to around a million people. No doubt us tax payers are the one that pays for this hand-out, but how much will these things cost us in reality? Both from the direct cost (lended sum + interest) aswell as the indirect cost (as customers having to purchase inferior products merely still on the market via government handouts to huge corporations).

It’s going to be one of those things books are written about in the future, with people shaking their heads, in disbelief over how ignorant we where and asking if we believed the world was flat too.

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February 22, 2009 - Posted by | External posts | , , , , , , , , , , , , , , , , , ,

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