Tuesday, December 18, 2012

It's the Unseen, Stupid

"Much of the case for big government rests on ignoring Frederic Bastiat's lesson of what is seen and what is not seen. We see what exists. We see that the government built highways, subsidized Ken Burns documentaries, bailed out Chrysler (twice), and operates schools. We don't see how all the money spent on such efforts might have been used had it been left in the hands of those who produced it. Would money in the competitive sector of the economy have been used more efficiently and effectively, to satisfy more human needs and produce more economic growth with the available resources? Economic theory suggests that it would, and empirical analysis consistently demonstrates that countries relying more fully on property rights and market exchange vastly outperform state-directed economies."

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