Thanks to Smith, Ricardo, Bastiat, Hayek, Friedman, etc., the West has a long history of uncovering and describing the brutal, but elegantly simple truths that guide economics. Lately, however, we have put in power people who not only have no knowledge of those "simple truths," but have grown and developed professionally far removed from the "real economy." Community organizers, professional politicians and bureaucrats, and life-long academics live in a sheltered nook in which they do not see the economic machinery at work that provides them their incomes and lifestyles. They are like a city dweller who thinks that meat and vegetables come from the supermarket.
We have people running our institutions who believe that by sheer force of their rhetoric, the fact that they have degrees from "prestigious" universities, and that they know what is best for the downtrodden, in fact, for all of us, they do not have to learn the laws of economics, that those don't apply, anyhow. They, therefore, pass minimum wage laws to help the poor that create unemployment for the poor. They assume that a nation's wealth belongs to the government and that they, as custodians of the government, can do as they wish with that wealth: Solyndra, bail-outs to corrupt unions, subsidies to abortionists, and, of course, a complete redo of our health system to help the uninsured that will increase the number of uninsured.
So, I thought it appropriate to re-post this little piece I wrote last year, March 12, 2012.
The End of Economics?