Christopher Westley formulates his own law of economics, which highlights how consumers apply much lower standards to government output, no matter what it is, than they do to the output that results from private markets. How else to explain hysteria about market failure and corporate mis-behavior as compared with unending government government failure?
The tragedy of mercantilism is that it tends to creep up when it can do the most damage, that is, during economic downturns. Sure enough, the US is experiencing a wave of protectionist sentiment, legislation, and action, some of it supported by the supposed friends of free trade. Let us begin the round up.
"Social responsibility" is out. Richard Teather explains that activists are demanding even more: corporate citizenship. This concept demands that a company's whole actions be carried out with regard to their "social impact" as interpreted by unions, environmentalists, poverty campaigners, and other non-profits. Of course, and mainly, it also means big donations to their organizations.
Why has the Concorde failed? The market determines whether and to what extent certain services such as speed are desired by society relative to competing demands on resources. No one can say a priori that faster is always and everywhere better. It may need to take a back seat to other priorities, like cheap tickets or mass availability or frequency of travel opportunities.
Gregory Bresiger tells the tale of how he was officially terminated: "How was I killed off at a relatively young age—well, 50 really doesn't seem that old today—and then miraculously raised from the dead by these mail carrying ghouls? Well, how does anything work in the federal government? It's difficult to explain. I'll give it my best shot."
This year marks the 70th Anniversary of the National Industrial Recovery Act, FDR's planning legislation that created the National Recovery Administration, the NRA. Henry Hazlitt saw precisely what the NRA would lead to, and after a dispute with the The Nation that resulted in his losing his position as literary editor, he wrote the following brilliant attack for the American Mercury.
The guild system possesses a superficial plausibility, which gives it what attractiveness it may have among market critics left and right. But consider how a guild system must work in practice. The logic of the guild is such that certain people who wish to enter a particular trade are denied entry.
One cannot discount the role of politics here. In the end, we could have a well-known person owning a felony record and being sentenced to prison and a once-prosperous company in tatters. We will see some federal prosecutors being feted as though they had just solved the Case of the Century. These are dark times, indeed, for the pursuit of justice in the United States of America.
If there is a solution, the market will find it long before the politicians will. Spam filters have dramatically diminished the problem relative to what it would otherwise be, and these have been provided solely by the pressures of commerce. The efforts to certify ISPs and police the web for spammers, entirely a private undertaking, are ongoing. The methods that work will last and those that do not will be discarded.
No restaurant or bar owner can force anyone to work or eat at his or her establishment, so at best, the state is "rescuing" people from their own free choices, which means that the political authorities—and the activists cheering them on—are in effect also coercing those workers and patrons into making choices that meet state approval.
