I had a busy weekend. I dug a hole, filled it in, and dug it out once again. I shoveled my driveway and then threw the snow back so that I could shovel it a second time. I vacuumed the carpet in our family room, shook out a bag of Cheerio dust, and vacuumed the same as before. Based on the prevailing view of political economy, I worked and therefore eased our economic crisis. Of course, I haven’t been paid for my efforts, but I hear tell that Obama will reward my labor in the near future. His paper payment, though late, will be his way of paying me for a weekend of hard work. FULL ARTICLE
Source link: http://blog.mises.org/9263/leaving-holes-undug-paper-unprinted/
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Excellent article! I find this is what I have to do to explain economics to people. The only thing I would suggest changing, is replacing digging holes with improving roads. It is amazing how difficult it is for the average person to make the connection.
Well, improving roads could have at least some benefit, so I’m not sure people would be convinced.
My first thought was on the energy that was consumed by both sides of the hole digging exercise. That reminds me of the two sides of the smoking issue, where tobacco was subsidized, while efforts were being made to reduce smoking. A win-win for the government though.
The most difficult argument I often have is convincing people that money is not same thing as wealth. It’s just apparent that most people cannot see any further than direct benefits, never, ever, able to see the indirect effects of something like printing up money.
And just getting people to agree that FED money creation is no different (economically) than having the mafia counterfeit money is also a surprisingly hard sell.
Maybe it’s just something an average mind is simply unable to grasp. Wouldn’t be the first time either.
When I was a child growing up in rural Iowa during the Eisenhower years, I remember my dad getting so upset with the farm policy out of Washington of paying farmers not to plant, not to milk, not to raise pigs, etc. I think that this foolishness has been going on for a long, long time. It just takes different forms.
Great article!
I think I prefer the pyramids. At least you have something to show for at the end. What’s amazing is that people still take the ideas of the guy who came up with this stuff seriously an try to apply them.
Ayn Rand explained the destructiveness of inflation in a very clear and humorous way in “Egalitarianism and Inflation” (Ayn Rand Letter, #18-21, June 1974). See Ayn Rand Bookstore.
For some reason I failed to get the article.
I agree with the idea, but the politicians have to do something to prove they are helping. If the system would be left alone and it would recover, their power would diminish. No longer would we honor FDR as a great savior.
But as a side note my father worked for the WPA and I’m sure it was what kept us alive during the great depression.
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