Lew Rockwell on Production

The Mystery of Production

by Llewellyn H. Rockwell, Jr.

How can you go wrong with someone who has three double-L's in their name?

Some excerpts follow, but read the whole thing.

"...Every government that seeks to provide goods and services faces the problem of economic calculation. Without markets and prices, rooted in private property and exchange, there is no way to place a value on resources up and down the structure of production. Government can order people to make this and install that, but it cannot solve the problem of how to resolve competitive uses of resources. That is only possible in an exchange economy...."

"...The market economy is the only means to solve the essential economic problem of the creation and allocation of goods and services essential to life and a flourishing civilization. We are not dealing here with technical considerations of management and following instructions. We are dealing with a problem that is exclusively economic: sorting out the competitive uses of time and resources. This is a point so all-encompassing that it is ironically easy to forget...."

"...This is the free-market capital structure at work in a complex economy. It is truly a miracle of coordination—extending through all sectors and across a huge range of time horizons—with no central management, and needing none. It balances human needs with the availability of all the world’s resources, unleashes the amazing power of human creativity, and works to meet the material needs of every member of society at the least possible cost...."

"...Let us never underestimate the social benefits that flow from this seemingly technical mechanism. The market economy has created unfathomable prosperity and, decade by decade, century by century, miraculous feats of innovation, production, distribution, and social coordination. To the free market we owe all material prosperity, all leisure time, our health and longevity, our huge and growing population, nearly everything we call life itself. The market economy alone has rescued the human race from degrading poverty, rampant sickness, and early death...."

"...And this is only to mention the economic benefits of the free market. It is also an expression of individual liberty. It is not so much a social system but the natural result of a society wherein individual freedom is respected, and where businesses, families, and every form of association are permitted to flourish in the absence of coercion, looting, and war...."

"...It is always an illusion to believe that more money is the answer. The federal funds rate is at a 40-year low, and that hasn’t done the trick. During the 1990s, the Bank of Japan tried again and again to manufacture a recovery through absurdly low rates, but that didn’t work either. There is no evidence from either theory or history that pounding interest rates into the ground can create anything resembling a sustainable prosperity. And yet, people believe it, or want to believe it, because it seems better than the alternative...."

"...But the monetary sins of the interventionist state are hardly the only ones. Our age is dominated by the state and its errors in both domestic and foreign policy. The state has given us recession and war, while liberty has given us prosperity and peace. Which of the two paths prevails in the end depends on the ideas we hold about freedom, capitalism, and ourselves...."

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yep, he pretty much nails

yep, he pretty much nails it, why spending an insane absurd amount of printed money to attone for 3000 deaths, albiet spectacular deaths, is the way of the state. UNENDING constant WAR.how convienient. bankrupting the nation in the process. what about vehicular deaths? why don't they launch an assault on GM and Ford headquarters? people in government are by far the worst losers on this or any other planet.:???:

Qwest, The full military

The full military assault on GM headquarters will have to wait until Ralph Nader becomes president. But I can picture it...:grin: