To my gay friends: Trying to Control an Economy Wrecks It.

There has been throughout history the belief by government that someone must control the economy of a nation – in that the government must say whom can produce, what can be sold, whom can sell it, whom can buy what, what might be imported and exported, where something must be produced – and whom might be allowed to couple up and settle down — and all of this and more in the belief that economies and people can and ought to be controlled or directed. Such is not the case however. For the less government intervention in the economy the stronger it is, and the richer it is, and more importantly, the wealthier each individual is. And if one wants to learn more of this, one should go to places like www.cafehayek.com and www.reason.com and www.cato.org and so many other places as to not be funny. But the one place that should not be accessed is the Communist theories, by any name – Socialism, Social Democracy, Fairness, National Planning or whatever it is called – and that the Communist Party in this nation has endorsed our current president shows how far gone we are. And gay folks are coming down on the wrong side of this economic issue, alas — here, learn:

All experience has shown that governments cannot control economies – what they do is determine whom will earn more than others based on politics and favoritism and cronyism and even family ties, and always force – and the rest of the people are screwed. This was as true in ancient times as it is today. And if one looks around the world now, one can see this – the more control over the means of production, and the methods of sale, and whom can import or export, and what prices “should” be – then the poorer a nation is as a whole and the poorer the vast majority of people are as individuals. Why this is so hard for the control freaks to see, I do not know. It’s so obvious that it is hard to fathom anyone who still holds to the control-is-best model. Yet our current government is filled with such people, on both sides of the aisle, as if politicians have an earthly clue as to what the “right” price should be.

The control has come in many names – royal prerogative for the glory of the nation was the mainstay for millennia. Then came Mercantilism, which was merely favoritism of the royalty for their buddies and cousins and such. Then came Marx and his convoluted concept that only total control is somehow fair and going to work, as if they could pull out a crystal ball out of some body cavity and see the future and “stabilize” the economy. That the Marxism, or socialism, or communism, or whatever you want to call it is watered down somewhat with talk of “economic justice” or something,they still cannot get around the fact that controlling what people do and want to do is not the best way to let an economy flourish.

Politics being what it is – and that’s the legal power and the power of state force – eventually the police state must intervene to make things “fair” and “equal” and “guide the nation” and so many other terms that one needs a score card to keep track of them all. Control begets more control, always. And it always leads to corruption and unfairness in the extreme. Go look at Cuba or Venezuela, or Russia or even Europe. We have 100,000,000 less people than Europe, and make far more money than they do. The poor in America would be middle class in Europe, and rich in most of the rest of the world.

And the reason governments cannot control economies for the better is that whichever winners they pick the losers will simply move around the controls to the black markets – which are truer entrepreneurs rather than criminals or speculators. Indeed, economies require speculators. They require people to gamble, as it were, on one thing over another. Smugglers, which have been around since the dawn of time, since governments always have tried to control the imaginary lines on the map called borders, are also a very pure form of entrepreneurialism. (and that that word comes up as “misspelled” on this word processor shows how far gone to control the thought of modern America is.) And of course, there are the “loopholes” in the laws – for no law of control can be written so clearly and so succinctly and no bureaucracies can issue rules and regulations so good as intelligent people cannot not get around them.

So over the past decade or more, and certainly reaching back to FDR, and speeding up in the last 2 or 3 years – our government has attempted to get control over the economics of the nation. Through zoning, through regulations, through permits and requirements to pay people this amount and not that amount, and bailouts and “government targeted investments” and all manner of subsidies – the government has convoluted the natural order beyond all recognition and rational thought. All these laws and taxes and bureaucracies making sure that the “nation” produces this amount of stuff, and not that amount, always leads to a catastrophe of sorts. And the solution proffered by the government is always more government. And the schools, instead of teaching “go do what you wish” are teaching “follow the leader.”

And so now, we have to bailout the banks – or they might fail. And so what if banks fail? If the banks hadn’t been required to lend money to some people, and restricted from lending to others, and if they knew they had no chance of a bailout they would not have extended themselves beyond their means. So now they are said to be “too big to fail.” Well, no, they are not only not “too big to fail,” but the bigger they are, the more likely they are to fail and then be propped up by other people’s money – mine. By putting loan guarantees – that is, the government will assume the debts of people who can’t repay – then the banks will lend to people who can’t repay – for they reason thus: take the short term profits, and who cares if the loans get repaid by those who take them, for they will be repaid by those who did not take the loans – the banks have lent money to people who have no hope of repaying other than defaulting and letting the taxpayers take up the slack.

Thus we have now deified big banks. Worse, we have been bailing out corporations who cannot compete. Corporations like General Motors became ossified, and they no long have to worry if they are profitable – for they know the government will step in and take care of them, like children know their parents will take care of them. General Motors and Chrysler should have been allowed to fail, or use the bankruptcy system, or been liquidated. Oh, people worry we’ll have no more Chevys? Who cares what a car is called? And Toyota is going to fail soon enough too, for they are propped up by the Mercantilist policies of Japan, and Japan is failing – it has less and less people, and its economy is moribund, and the government there is borrowing money from producers elsewhere to keep the national car industry afloat, and their debt is piling up, and it cannot be repaid, and then probably, sadly, the US will come in and bailout Japan, for it is “too big to fail.” And who cares where cars are produced? It is irrelevant to me.

Indeed, it is irrelevant to individuals, whom are the economy, where something is produced and by whom. It is irrelevant to a nation where some goods are imported from or what goods are exported. Weirdly, since the dawn of time – all governments have striven to stop imports in the belief that these imports take away jobs in the homeland, as if no other jobs could ever be created except those that exist this very day. So they have striven to increase exports, so that the people have jobs! As if once a job is created it must be preserved for all time. But if every government thinks the same – and they do – then all the exporters will be stymied by the importing nations – and the nation next door, equally obsessed with exporting but preventing imports to achieve some “balance” which exists only in the fetid minds of control freaks and the zero-sum school of economics – will not be able to export what they produce – for the nation next door will stop the imports. For all “imports” and “exports” are the same thing – goods produced where they are best produced and shipped to where they might be consumed.

Actually, there is no such thing as “exports” or “imports” – for the two terms come from the imaginary borders set up by governments – which supposedly will protect this or that nation’s economic system from “predators” and “speculators” and “smugglers” and “the black market” or whatever other terms bandied about as supposedly nefarious things and people. There are only goods produced by people who know how to produce them in places that are best suited to producing them. And so each “export” is always an “import” and each “import” is always an “export.” But back in past times, when royalty lived off the revenue of the taxes at a nation’s ports – well, “im” and “ex” became very important to the elites of royalty. And that’s what we’re trying to do now. Every country on earth is trying to boost “exports” while limiting “imports.” Thus, they are all working at cross purposes to each other to protect the “royalty” now in power – and screw the people who simply want to buy or sell what they want to.

Similarly there is no such thing as a “bad housing market” – that is, falling home prices. I think it is wonderful that the price of housing is falling – it makes it rather attractive for me to buy a house – that seems good to me if a house that was, say, $100,000 is now just $50,000 – for this is good for me. How then can a lower price be bad for me? It is perversely bad for me if house prices are kept high through government intervention. The government winds up using my tax dollars to prop up the housing prices and makes housing more expensive for me. I want housing prices to plummet – as each and every person who is trying to buy a house should want the house prices to plummet. I should not be burdened with expensive housing just because someone else bought a house at too high a price, thinking the prices will climb and now they are falling.

Just like falling commodities prices is good for me and everyone else – the lower the prices on goods, the more goods I can buy. But governments always try to boost the price of commodities because the commodities producers go to the government to get subsidies and regulations to boost the prices – which might be good for them, but is bad for me. And I am not in favor of spending more on goods so that some other person has gotten the ear of government to keep the prices high.

But now, alas, we are besotted with control freaks in government. And to keep their power they curry favor by promising everything to everyone. They promise higher home prices to sellers, and they offer subsidies to buyers, so that buyers pay the taxes to keep the sellers happy, and the sellers pay taxes to subsidize the buyers – and it gets convoluted. And until this nation’s individuals recognize this, we are in for a long bumpy ride. Indeed, virtually every recession, and certainly the Depression, was caused by controls determined by government as those in power seek to maintain their power. For there is no more shiftless work than to be a politician – all one has to do is be popular, which is easy when one promises nirvana to everyone, get into office, and then, effectively, never work another day in their lives, but live off of other people’s money.

And this economics lesson aside – which is put best as: get the government out of the economy except for courts and the rule of contract law – I now have to bring this news to my people – aka, the gays. They are being hoodwinked by the Democrats, aka, Socialist and Communists (for when the Communist Party endorses a presidential candidate, one should run for the hills!) – into believing that the government is doing us a great favor by controlling things and then giving us a few crumbs. Obama and his minions are doling out just enough nice words to get the votes, but no more – they are seeking to get the votes like royalty always sought support – for in past times the peasants and the people rose up in revolt and attacked the palace and the castle to get rid of the control freaks self-installed, so the king would occasionally hand out concessions and waivers from the laws they passed, or perhaps some small subsidy or permission, or even a gold coin from time to time, to buy off people’s support for its family over some other family – as is happening now in Washington. We must go there for favors.

But there are no “natural” leaders, no “born to rule,” no “we know better because we have ermine” people – there are only people who hoodwink individuals into thinking that someone must be in control. But a controlled economy leads to poverty and chaos, and an uncontrolled economy leads to wealth and stability.

Sometimes this control came in the name of religion, and other times in the name of king – but there’s little difference but the name. And so I urge the gay folks of this nation to give a rat’s tuckus as to whether Obama or any Democrat is “for” them – for we will all suffer the consequences of the control and the failed economics and the high taxes and the bureaucratic excess as surely as our hetero brethren. That the Republicans of this nation are going the “Theocracy” route is just as dangerous as the Democrats going the “social justice” and “economic fairness” route – they are merely the same thing with different words to confuse the individuals who will vote for one or the other.

And the best thing for gays is if the Democrats and the Republicans disappear, as it is the best thing for our hetero brethren. And then once a more libertarian limited government is in power we – gay and straight – will be far better off – and we will not have to argue over whose tax dollars are spent on what, and whom is making laws and setting rules and regulations to guide our lives. We need less rules, less laws, less taxes, less regulations, less bureaucracies, less programs to allegedly help us. Less is more when it comes to government. So I urge my gay buddies to vote Libertarian – as I urge my hetero friends too – and rid this nation of the Democrats and the Republicans – for both parties have but one goal – to gain the governmental power so they can live as royalty, even without the ermine. There is no difference in the two parties in this regard. And those two parties are merely arguing over whom should be the king.

Indeed, they are like the Lancasters and the Plantagenents – two families who fought over whom would be king of England in Medieval times. Or the Capets or the Bourbons, two families whom fought over whom should be king of France. Or the Hohenstauffen and Hohenzollern, two families whom fought over whom should be Emperor in Germany. Or even the Romanovs or Lenin, whom fought over who should be “leader” of Russia. The history of the world is filled with such families, whom feather their own nest at the expense of all others. The Democrats and Republicans have now come down to arguing over who will control the people and their money and whom shall be “King” of America. And this is the peril of our times. And I say be gone, both miscreant parties, or this nation is as doomed as any other failed nation. Oh, civilization always survives, it’s the individuals within the civilization which suffer. And the Fundamentalist Christians are the same as the Socialists – they have faith that they know how best to order people’s lives – and they are fighting like those families of old over whom shall be king.

And this is not the purpose of this nation – which was to let each individual make his or her own way, and to expand liberty of action and thought and economics as far and as wide as possible. But the concentration of power in Washington is the enemy, not one or the other party. That the richest counties per capita in America ring Washington is a sure sign of impending doom. Washington DC should be a city no one wants to live in – not a city people flock to so they can get their hands on power and the money of the rest of us through the power of taxes. Alas, it will take a lot of convincing. But I do what I can. But frankly, I’d rather have money than a law which says I can file a joint tax return with a piece of paper in my hand from some government flunky who thinks he’s granting me a privilege. For my right to wealth such as I want to be wealthy is far more important to me than what the government deigns to grant me as some “right” that I must fight for.

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