Here in South Africa there is plenty of talk of nationalizing the nation’s mines, especially the country’s platinum mines. After all, SA is no longer the world leader in gold production, while the country still produces 80% of the world’s platinum. In fact platinum group metals (PGM) account for the bulk of SA’s mineral value.
One of Wolfman Jack’s favorite tongue-in-cheek commercials, delivered in his raspy voice, went like this: “You say ya kids ain’t got no clothes, ya ain’t got no food in the frigerator — THEN BUY YOURSELF A COLOR TV BABY!”
This facetious admonition, spending way beyond ones means, is exactly how government at the federal, state, and local levels have been behaving over the past 50 years. Even worse, government at all levels has been enabling Americans to do the same.
“They’re a damn nuisance, they are,” offered the man as we walked toward a group of tourists excitedly shooting pictures of two African Penguins standing silently in a drain pipe.
A nuisance? We were among dozens of tourists from all over the world walking toward the Boulders in Simon’s Town to see–the Boulder Colony of African Penguins.
We’re wrapping up our discussion of international trade in Econ 100 today with an analysis of tariffs and import restrictions. The defense of protectionism is a classic example of the Broken Window Fallacy in action.
Suppose the government decides to impose restrictions of some kind on automobiles produced in Japan. To the untrained eye, this looks like a great idea. More Americans are employed making cars, and they earn higher incomes. Detroit booms. It’s easy to see autoworkers’ nice cars and nice houses and conclude that protectionism is a great idea.
In its search for revenue, the Crown decided to create new monopolies — and its meddling in the vital wool trade had disastrous results.
The clearer it had to become in the course of the war that the Central Powers were bound to be finally defeated in the war of starving out, the more energetically were references made from various sides to the necessity of preparing better for the next war. The economy would have to be reshaped in such a way that Germany would be capable of withstanding even a war of several years.
