Thursday, May 17, 2012
The Real Problem With Central Planning
Lee Harris puts forward the proposition in this article in the on-line The American that the political/economic issues in Greece and other members of the European Union are due to the fact that central planners can be blamed for the failure of their policies while free market problems can't be traced to the decisions made by government figures. This leads to the kind of unrest now occurring in Greece, where voters are rejecting leaders that implemented measures that are seen as the cause of their problems. This is true, in a way, but Hayek might have said, and his followers would now say, that economic problems are not caused by free market activity in any event, that all economic failures can be traced to government intervention.