Wednesday, September 22, 2010

[2/24/10] Cargo Cult Economics

When South Sea islanders encountered the wealth of western societies -- even as late as World War II -- they sometimes built and worshipped facsimiles of shipping infrastructure -- airstrips, control towers, and radios-- believing that would persuade their visitors' gods to send the goods!  Such cargo cult worship reflected a modest ignorance of the methods and means of production.

Robert Robb, columnist for the Arizona Republic who I have commended to you before, writes today of " The Chief Economic Worry About Democrats."  He says "Democrats tend to view a certain quantity of economic output as a given. It just happens. So, the key question of political economy is how to justly distribute the benefits."

Indeed.  And they won't stop their redistribution until we are all equal and much, much poorer.  Their economic belief is the ultimate irrationality: the supply of goods and services is the same at any price.

They are modern day cargo cultists with no knowledge of how to provide anything for anyone, much less the everything that they promise to everyone.