Thursday, July 26, 2012

The Hazards of Central Planning

From the Stoa this day I will shed some light upon the various crises going on around the world.

Too much central planning.

In France, a single cargo hauling union strikes and the highways shut down. Why? Because the unions in France, and much of Europe, are monolithic. Every truck driver is part of the SAME union. Then there are the sympathy strikes that then shut down the subways, buses, oh, and gas stations. No way to work now all because of one union.

Economics. In the good old days of Europe, everyone made fun of the Southern parts as corrupt and possessing poor currency. However, everyone loved to manufacture things down there, and their beaches were rather nice. Then, they decided to have one big currency with little central planning. Binge spending and debt ensued. Now they want full central planning. Not gonna work.

Banks are merging into super banks. When one goes down it will pull all the others with them. In America, in the past, banks were very regional, sometimes only within a portion of a State. If one went down, you went to the bank down the street. Now, 5 banks in the US hold over 7 Trillion in assets...other people's assets.

Congress keeps trying to do this and to do that. The Fed tries to do this and to do that. STOP. The Free Market knows just what to do. It knows what to price for and how. It knows what needs to be built and WHEN (and it is not Green Energy).

The market will punish the corrupt and the incompetent (I'm looking at you, GM and Chrysler). If you consolidate power you make that power vulnerable.

Lets think about that some more. If you put all the money in one place and that place gets swallowed up in the ground, where is all the money? If you have one union in a nation that controls the power grid, what happens if Barney doesn't get his raise? What happens if all the Doctors stop working (this happened in Slovakia this year). What happens if all the fuel trucks stop running?

It can happen and does. Military doctrine calls for centralizing only when going on the offensive, otherwise you just make a fat target. Centralizing any part of your society makes that asset vulnerable to disruption.

Just don't. Obama, stop playing around like you know what you are doing and just stop it. Same for you Congress. We the People know what to do and how to fix it. No more tax breaks and no more subsidies. You didn't invent the iPad or the cell phone, so don't try.

Leave it be and We the People will fix everything.

Live well.

--Zavost

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