Government Causes All Recessions

When an economy operates with free markets, good things are always happening but the good things are not visible. When one industry is losing income and cuts back on production, resource move to an industry that is expanding. The difficulty in the losing industry is highly visible. The emerging prosperity in the new industry is not immediately apparent so it is assumed, government intervention is necessary.

All government intervention accomplishes is to allocate resources more and more inefficiently until an economy fails to function. The negative effects of mis-allocating resources always outweigh any stimulation benefits resulting from intervention. Government solutions always cause larger economic problems down the road even when the immediate effects appear positive.

Did I say government causes recessions? Yes I did, but there is even a root cause of that. The underlying cause of  is self deception among consumers as well as professionals. People intellectually can understand the folly of trying to create prosperity through government. Unfortunately the human mind is hard wired to act on the basis that government has supernatural powers. Society looks to government to create prosperity in a way that is similar to the way kings in the Middle Ages expected alchemists could turn base metals into gold. There was a time when people almost universally believed in magic and ghosts. It took thousands of years for people to abandon these erroneous beliefs, and still they are not entirely gone. There is no telling how long it will take societies to figure out that government can’t cause prosperity.


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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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