Economics can serve families

COMMENT, Global — Confused by Economics? A few politicians are too.

Economics is just theories. This is something not often enough remembered.

“(In the Great leap Forward) Mao launched a large number of large-scale but senseless projects, which achieved little, but took thousands of laborers away from the urgent task of growing food.

“At this time, the most popular economic theory, in both east and west, proposed that for a backward country to develop, it needed industry, and industry needed steel.”

– David Rooney: Guerrilla: Insurgents, patriots and terrorists from Sun Tzu to Bin Laden

In my first economics class (previously it was called commerce); I was 16, and we learnt about both free market and planned economies. As equals!

There is no such detailed chapters on planned economies in text books almost 2 decades later. I still remember learning the efficacy of 5-year plans. Dogma.

Eocnomics is often theory. Theory becomes dogma. Dogma becomes truth.

Dogma of Free Markets and Communism

So when you hear media commentators waxing lyrical about: economic growth, and how free markets deliver better outcomes, and the benefits of free trade it is easy to forget.

That although the opposite of Mao’s interventionism; free markets, unfettered and uncontrolled are not the sole creator of better societies.

The opposite of a disproved dogma is not the truth.

The dogma of free marketers and full freedom of choice, is so ingrained as ‘good’ many don’t question why social outcomes and social integration have been declining.

So what does create better societies?

It is undeniable that free-market economics are better at preventing starvation than central-committee-driven 5 year plans. The real reason for this is simple.

A bureaucratic hierarchy will not pass news up to the boss. And all committee’s have a boss whether recognized or not.

And especially if the boss is a dictator, likely to execute &/or torture you and your family, for failing to implement his or her plan properly.

If you had Stalin for a boss, or Mao, would you be the leader to tell them his plan is not working? Really? Well you’d be dead?

What communism lacks is a free press. Or free criticism. Or feedback.

Communism and the far left suffocates under the weight of its own propaganda. Communism is immoral and wrong. It has been recognized as extreme dogma.

But lately, the economic Right has pushed the debate so far Right, they are drowning under the weight of their own greed. Free markets are dogma, too.

Totally unregulated markets are about greed, and when the market stops, normal people get hurt.

So why do I worry about the west?

Most major economists, including even monetarist Milton Friedman, conclude that the government needs to regulate the economy.

Meanwhile, we have freedom to dress and eat and have sex with whom we like. Too often cultural secular freedoms are mixed up in our minds with economic freedoms.

So now many of us see it as freedom to be partying, drinking and engaging in boorish behavior. Of course this is spreading globally from the English-speaking West.

So cultural freedoms are pursued, instead of ensuring that our governments deliver good outcomes for families.

And we need to ensure our government deliver good outcomes for our families. We need our governments to be rewarded for good community behavior and punished by bad greed.

And too many governments are using free markets as an excuse to do nothing.

I doubt some of the treasurers around the world actually understand important economic principles.

Many economists I have talked to are dogma-pushers who argue their dogma and against rational basis for understanding markets.Their dogma becomes the only way.

Thankfully, the politicians lament of economics, just ‘take a bit of all theories’ looks like a counter-balance to economic dogma. Politicians are what save the world from economic dogma gone a bridge too far.

Balance is key. Free trade has strengths, and is a useful tool, but is not a panacea. Government planning has strengths, but is not a panacea.

We need a balance between Government and Private business. And a limit on corporate power.

We cannot exchange one dogma for another constantly. Pragmatism is needed. Some of the economy must be public, and some private.

CHRISTOPHER HIRE

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