The Failure and Fallacy of Central Planning
Ironically, two seemingly unrelated articles in today’s New York Times reflect much of what is wrong with the United States, at least in an economic sense. One op-ed, titled “The Tragedy of Joe Biden,” is by Peter Coy, a regular columnist for the Times. The other one, titled “A Big Idea to Solve America’s Immigration Mess” is a Times editorial.
In his article, Coy expresses sympathy for Joe Biden. He says that Biden just didn’t get the credit he deserved for what he did in managing the economy. He laments, “He had some remarkable achievements when it comes to the economy, but he couldn’t shape the narrative around his own record.” Coy writes about Biden’s pride in having created more than 16 million new jobs and his success against inflation.
What’s wrong with Coy’s point? Like so many other people, he doesn’t question the notion that in the United States, like in other countries, it’s the job of a president to manage the economy. A presidentially managed economy is now just taken as a given. No one questions it. And if a president does a good job at managing an economy, he gets reelected. If he doesn’t, the voters reject him. As the adage goes, “It’s the economy, stupid.”
At the same time, most everyone is convinced, thanks to the indoctrination received in America’s government-managed educational system, that Americans live under an economic system known as “free enterprise.” But in a free-enterprise system — a genuine free-enterprise system — economic activity is free of governmental regulation, control, and management.
Licensed under the Creative Commons Attribution-Share Alike 3.0 Unported license.
So, how does one reconcile the principle of a presidentially managed economy with a genuine free-enterprise system? One doesn’t. They are opposites. By its very terms, a presidentially managed economy violates the principle of economic activity that is free of governmental regulation, control, and management.
Where Coy and Biden and most other Americans go wrong is in judging the principle of a presidentially managed economy within a relatively short time period — say, the last four years. Actually, the better measure is the last 100 years or so, stretching all the way back to the Franklin Roosevelt regime, when the principle of central planning, along with what is called a welfare state, was adopted by the U.S. government.
Consider, for example, the value of the dollar. Since the time that FDR foisted a paper-money system on the American peopl
Article from The Future of Freedom Foundation
The Future of Freedom Foundation (FFF) is a leading voice in libertarian thought, tirelessly advocating for individual liberty, free markets, and limited government. Established in 1989, the FFF is more than just a think tank; it’s a hub for intellectual exploration and policy advocacy that draws on the classical liberal tradition and Austrian economics. Through insightful articles, videos, and events featuring top libertarian minds, the organization provides a robust critique of mainstream politics and policies, championing instead the principles that underlie a truly free society. For anyone seeking a principled stand for freedom and limited government, the Future of Freedom Foundation serves as an invaluable resource and an inspiring beacon.
