The Devalued Prime Minister of a Devalued Government

Apparently there are still some decent politicians in Britain:

Fact or Fiction?

I think this is about as arbitrary as what they have been doing:



Thanks Tim Swanson at mises.org

Walter Block Takes on Campus Thought Police

I posted last semester about Prof. Walter Block's incident at Loyola College Maryland. He was accused of racism and sexism after claiming wage gaps between races and sexes might be due to something other than discrimination. Of course he used evidence to support his claims, but egalitarians on a witch hunt don't usually bother with the facts. Anyways, Dr. Block gives a nice update on the situation during a podcast with Lew Rockwell.

I'm Glad He's Here

Oops. Turns out the U.S. government will have to borrow $9.3 trillion over the next decade to pay for Obama's inane projects. Right now the national debt stands at just over $11 trillion. Our total Gross Domestic Product equals $14.5 trillion. So if we add all of that new debt to our current debt, we will have a national debt 140% of our total national GDP. That means it would take over an entire year to repay all the government owes; that is over a year of paying for nothing but debt and nothing else. And to bring it a little closer to home: $20.3 trillion in debt equals almost $67,000 per man, woman, and child in this country. I am sure it is all worth it, Barack.

Hope

This is change vast sums of money I can believe in:

Six Years Later

It has been six years since the war on Iraq began. What do we have to show for it? Well, there are the 4259 American soldiers dead. Then we have $600 billion in official costs; other estimates go as high as $3 trillion. And of course, we can't overlook the 1.3 million Iraqi civilians that have been killed.

The costs are clearly staggering. But there seems to be no end in sight. Obama has said he will end our "combat" role in the country within a couple of years. Apparently the 50,000 remaining soldiers--trained in the art of warfare with guns at the ready--will have nothing to do with "combat" missions.

Nevermind all that! I am sure in these tough times our gracious leaders would never lead us astray. Besides, I am also quite sure that the squandering of trillions of dollars must stimulate our economy. Or something.

Can Government Fix the Roads?

A scare story over at CNN about our failing infrastructure got me thinking. Would any of this have happened without government ownership of roads, bridges, dams, etc.? I think we would be in a much better place with a competitive market for infrastructure.

The American Society of Civil Engineers gave our roads a grade of "D-". Apparently we spend "more than $4.2 billion a year stuck in traffic." This points to one of two things: either we have a shortage of roads or the cost to drive on the roads is too low. Either way, it seems there hasn't been an efficient distribution of roads. Government, of course, owns these roads. Why not let private individuals and companies own the roads? With competition and free pricing system we could figure out where roads are most needed and ration the space available on the roads to avoid too much traffic.

Next, I think the Engineers inadvertently admit who is at fault. They also handed a "D-" to the inland waterways. "The average age of all federally owned or operated locks is nearly 60 years, well past their planned design life of 50 years." Of course the federally owned or operated locks are outdated. As Milton Friedman once said: "If you put the federal government in charge of the Sahara Desert, in five years there would be a shortage of sand." Mismanagement, waste, and inefficiency is a symptom of any government-owned entity.

This may all seem a little abstract and not applicable to these so-called "public goods." But put it in the context of your everyday life. What if the government mandated that all milk would be "free," that is, it would be paid for like roads, with taxes and fees that are often divorced from the milk market all together. Clearly everyone would hurry to get some free milk and shortage would ensue, either by all the normal milk drinkers taking the milk or inviting new milk drinkers that did not buy milk before. So it goes with roads; free access or encouraging driving at high-traffic hours creates traffic jams, which could be a shortage of roads or an overabundance of drivers.

Or what if you went into Best Buy and instead of selling computers they were selling typewriters? The market would surely put them out of business, or severely damage their revenues. Government ownership, however, allows outdated equipment and infrastructure precisely because there is a lack of competition.

Engineers, when you say "that the government and the private sector need to invest $2.2 trillion over five years," I say: You stick to engineering and let others take care of the economics.