Comments (40)

• Enjoy Every Sandwich

  Another advantage for Obama is that the "private" part of "PPP" allows him to blame the "free market" when the inevitable failure occurs. If, on the other hand, he can trick people into believing that the PPP is a success (like neocons who think "we've won in Iraq") of course he will take the credit.

  Politicians love power but hate responsibility.

  Published: December 12, 2008 9:09 AM

• Matt

  Wonderful article - one of those you read and wish you could broadcast to everyone. Too bad the message is lost on so many people.

  In line with the general theme of this article, it becomes increasingly clear to me that what government seeks to do blame freedom (capitalism) for its own inevitable shortcomings. With a good looking, well-spoken anti-capitalist leading the charge I suspect Rothbard's admonition will come true sooner rather than later.
  

  Published: December 12, 2008 9:20 AM

• magnus

  Great article.

  One of the Left's favorite tactics is to use an abundance of names for the various flavors of socialism. It's sort of like their endless (and painfully BORING) fascination with dissecting the minutiae that supposedly distinguished Stalin from Trotsky.

  Then, when you call their preferred form of Left-wing statism "socialism," they roll their eyes and call you a philistine and say that you don't properly appreciate all their carefully-designed distinctions and nuances. Of course, there are no such nuanced differences, just as there are no real differences between Stalin and Trotsky, only changes in labeling.

  Published: December 12, 2008 9:46 AM

• StatusQuoJoe

  Enjoy Every Sandwich LOL this is something that I have battled/encountered in nearly every job that I have had in my career.

  It must be a collective subconscious thing or perhaps attributed to collective social ideals. That is the general tendency for management to thrust responsibility towards subordinates but deny authority.

  It is a precarious situation to be claimed a "Project Manager" with all the responsibility but denied any real authority. For instance in most corporations in my industry the "deal makers" scope the project including work items and budget and once secured the project is then handed down for responsibility to those who actually do the work i.e. those who had no input in the beginning to scoping the work or consulted as to the reality of the objectives or schedule. To add insult to injury the project managers are also denied the right to communicate with the client to renegotiate work items and budget.

  Thus the end result is usually overtime for salaried employees since the original work was estimated incorrectly and upper management refuses to be shown inefficient in their skills at setting the original contract terms. For PPPs this process is approximately squared since the deals are negotiated by individuals who are in political positions and have no real experience in the particular kind of work at hand.

  All the responsibility with none of the authority.

  Published: December 12, 2008 9:50 AM

• greg

  Thank you for the good article. It applies your economic theory to real life situation in a way that shows true cause and effect in our current economy. Ron Paul should read this and take a lesson on how to communicate sound economic policies to the public.

  Published: December 12, 2008 10:14 AM

• The Frugal Libertarian

  Unfortunately, I think socialism is inevitable. If everyone is under the false impression that freedom is the problem, then how are we suppose to convince anyone that freedom is the answer.

  Socialism fits perfectly with our culture of instant gratification. Innovation is abstract to to many people, much like the delayed gratification of saving money instead of borrowing. They want now and the government seems to have the solutions now so why wait for some entrepreneur to solve any problems.

  I am pessimistic about our future.

  Published: December 12, 2008 11:00 AM

• JEHeer6231

  Don't forget about us Dvorak users.

  Published: December 12, 2008 11:07 AM

• billwald

  Essay has the tail wagging the dog. The goal is fascism. It is the financial companies that are running the country. The government doesn't give a hoot about the people who take showers after they get off work in spite of the cheap talk.

  Published: December 12, 2008 11:23 AM

• Enjoy Every Sandwich

  StatusQuoJoe: LOL, by any chance do you work in the IT industry? I am a software test engineer, and you just perfectly described every project I ever worked on.

  Published: December 12, 2008 11:30 AM

• Anonymess

  A number of people in the incoming administration are saying that America faces the same scenario now as in 1932 and they are going to do an even better job of implementing the solutions than FDR did. In other words, they are planning to fix the errors they think FDR made by being even more aggressive with the theoretical approaches.

  And just as that formula resulted in unmitigated misery for America under FDR's despotic rule, we can predict that we are about to suffer interminably worse outcomes in the coming decade...or two.

  Welcome to the incipient nadir of United States economic history. If you survive, it will be something to tell your grandkids about.

  Published: December 12, 2008 11:51 AM

• Inquisitor

  OK so let's see some of these (they all suck, these are just the worst):

  "# Create a national network of public-private business incubators by "investing $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country." "

  Incubators? What are these? Is he planning on breeding an army of Obamaphiles?

  "# Expand PPPs to advance "leading edge technologies" in space and aeronautics research to spur economic growth and innovation."

  Read: throw tons of money down the toilet, most of which will be pocketed by big firms for pretty useless technologies.

  "# Establish a Presidential Early Learning Council to expand public/private investments in the "youngest children." "

  Read: We need to get em while they're young!

  "# Mandate public service and require American middle and high school students to perform 50 hours of service a year, and for all college students to perform 100 hours of service a year. At the community level, PPPs will be used so "students can serve more outside the classroom." "

  Read: Your minds and bodies are belong to us!

  "# Develop and deploy clean coal technology by using the Department of Energy to enter into PPPs to develop five new commercial scale "coal-fired plants with clean carbon capture and sequestration technology." "

  Um, whatever happened to nukular power?

  "# Expand PPPs between schools and arts organizations by increasing resources for the US Department of Education's Arts Education Model Development and Dissemination Grants."

  More money for moochers and useless parasites.

  Wow and I thought my own country, Sweden, was bad!

  Published: December 12, 2008 12:09 PM

• Liberty4All

  Prof. Brown -- Well done.

  However, does anyone know of an online lexicon that lists all words and phrases used by the socialists and the like? Public-Private Partnership (PPP) is right up there with "social justice", "fairness", and "investment". It seems they've managed to co-opt business-speak to further their ideas. As we know, there is few high profile politicians who will openly and proudly admit that they ARE socialist/statist when we all know the philosophy that guides their decisions.

  Published: December 12, 2008 12:14 PM

• heuristic

  StatusQuoJoe and EnjoyEverySandwich, so get a job you enjoy and quit your whining.
  

  Published: December 12, 2008 12:25 PM

• Chad Rushing

  I agree wholeheartedly with the comments from The Frugal Libertarian above.

  The only way to slow, halt, or reverse the creep of socialism is for private individuals and business institutions to start practicing more individual responsibility, self-sufficiency, and accountability, something I sincerely doubt will happen given our current cultural climate and momentum.

  What would happen if the government offered some new socialistic program of wealth redistribution, but nobody whatsoever enrolled out of principle?
  

  Published: December 12, 2008 12:26 PM

• Reason

  Educrats say: the transmittal of right cultural values overides any concern for meeting consumer demand. Besides, the economic distortions you cry about will only be in the short run. The public school system, if allowed to function properly, if the right reforms are put in place, will teach the kids before the market does. With the proper public molding of children, societal demand will eventually become more in line with democratic values.

  ps. Inquisitor: Sweden isn't all that bad, is it? I mean, you stayed out of major wars for 200 years and produced ABBA, Henrik Larsson, good cheap furniture, Zlatan Ibrahimovic, Bjorn Borg...
  I could go on.

  Eat, Drink and Be Merry!
  

  Published: December 12, 2008 12:39 PM

• heuristic

  Bill Wald, interesting point. Socialism is government ownership of the means of production and fascism is government dictatorship of the use of the means of production. So what does one call the American system of "revolving door" appointment of former business executives as government officials and "retirement" of government officials into lucrative positions as consultants and lobbyists?
  Also, if one controls something completely, isn't that a fair definition of ownership? What's in a word?

  Published: December 12, 2008 12:46 PM

• StatusQuoJoe

  Enjoy Every Sandwich - LOL I am a civil engineer a sort of related field, well at least its quasi tech. I see this trend in all fields of technology. Another macro problem I see is that once a technology has been put in a black box you have to operate the black box cheaply as do your competitors so you can stay competitive. The problem is exponential, since early on computer aided engineering allowed for rapid design solutions for engineers and technicians who had years of experience so they understood the underlying assumptions in the black box. But now the new generation of engineers do not have the benefit of this experience and the experience was denied them and mentoring did not occur so we have an entire generation of designers and engineers who blindly use automation and never question the underlying assumptions. This could one day lead to disasterous consequences. Now, managers who have no experience whatsoever make project scoping decisions (politicians) since they see the results of computer aided engineering but fail to educate themselves on the underlying realities. I am not saying CAE is bad, just that it needs to be used wisely and more people who make decisions should either consult those who do understand or those who have experience should be promoted into those positions.

  Before 911 there was a huge push by the EPA to institute a program called GASB34 which required all utility providers public and private to inventory their systems hardware with GIS technology to depreciate their taxes using the system formulas. Although it wasn't a perfect system, if it hadn't been squashed by the Federal Government following 911 (paranoia from politicians who didn't want terrorists to have information about 8" sewer lines) our country would have a perfect mechanism right now to categorize maintenance/repair/rehabilitation of water and sewer systems. The ASCE has estimated for years that our country needs to invest a minimum of over $5 trillion to upgrade existing utilities systems for water and sewer. These needs could be addressed with Obama's plan but won't since the ideal mechanism to identify these needs was trampled by our government. Again, nice bridges will be built so that politicians can garner the publicity from an ignorant public.

  heuristic thanks for the encouragement ;)

  Published: December 12, 2008 1:01 PM

• Inquisitor

  Reason, no, it's not all that bad compared to the US, not anymore. The socialist mentality is on the wane (still here though) and our media is virtually controlled by apologists for leftism, but then the US differs little in that.

  Heuristic, nothing like libertarian tough love, now is there? :)

  Published: December 12, 2008 1:21 PM

• DD

  "Atlas Shrugged" may be coming to reality. Most of my cowerkers, who are mostly engineers, are convinced that either FDR or the WWII got us out of the depression. It seems that the deeper the hole they'll dig for us, the more the people will demand more digging.
  I had 7 co-workers laid off today (10% for my company), and I don't think that they realize they will continue to subsidize some other jobs like the Auto industry, at their expense.
  I know we're optimistic about getting the knowledge out there via internet and stuff, but have any of you checked out how much socialism propaganda is out there. for every peter schiff or ron paul youtube video there are a million obama propaganda videos.

  Published: December 12, 2008 1:32 PM

• Glen

  PPP's, turning innovators into bureaucrats since 2009. Government capture of the private sector is ramped up here but that's been going on for years. I don't know but this sounds like a synonym for what the GOP called privatization. I mean, when the world goes socialists, where's the profit in being the first lined up on the wall. Smarter to take the lead or at least live well until your shot. Sounds Fabian to me.

  Published: December 12, 2008 1:34 PM

• fundamentalist

  Great article! It might interest readers to know that CS Lewis modeled Screwtape and his environment on a state bureacracy. He wrote that he couldn't think of a better analogy for hell than a bureacracy.

  Published: December 12, 2008 1:35 PM

• Enjoy Every Sandwich

  SQJ: yeah, I definitely see parallels in our respective fields. We have similar issues with automated tools (in my case with automated test tools like WinRunner and TestPartner). Managers who know nothing about the tools other than the content of the glossy sales brochures making really bad assumptions.

  heuristic: I actually like my job, but that doesn't stop me from laughing at the absurdities I encounter; the "pointy-haired boss" of the Dilbert cartoon is all too real to me. Sayyyy....your hair looks kinda pointy...just kidding!

  Published: December 12, 2008 1:39 PM

• greg

  DD,

  It is not about the number of people delivering the message, it is the message itself. Peter Schiff pumps the gold position because HE HAS A HUGE GOLD POSITION and uses the media for his PR purpose. Ron Pauls solution to everything is going back to the gold standard. Basically, their message is just not connecting to the public.

  What is connecting is Sen. Dodd on TV this afternoon making a case that the auto bailout should not be shouldered by the workers of the UAW. Blue collar workers getting the shaft while bankers on Wall Street get bailed out free and clear.

  Ron Paul should be out there countering this argument pointing out all the cost the unions have placed on the US automakers that are the root cause of their current problems. The same was true with the airlines, they couldn't adjust to higher oil prices within the union contract and legacy cost.

  This is what I liked about this article, it is current and take a more realistic view. No talk about the piano industry or 1790 France. The public will respond to a current view, take the UAW contract apart and expose the problems for what they are.

  Published: December 12, 2008 2:49 PM

• Bruce Koerber

  This great article ends with "Entrepreneurship and innovation would be free to flourish in such an environment."

  The environment 'just around the bend' has many different 'landscape' forms. One is the wildfire destruction of the dollar, another is the rekindled spirit of liberty in a significant number of Americans, and another is a reorientation of education that is spearheaded by an appreciation of subjectivism.

  These aspects of the 'environment' that will be conducive to entrepreneurship and innovation will have done the following, respectively:
  - purged away the ego-driven interventionists,
  - returned Americans to their philosophical roots,
  - aroused the slumbering with the thrill of Austrian economics!
  

  Published: December 12, 2008 3:16 PM

• Caveman

  greg, infairness to Schiff, he discusses more than just gold. Yes, he's heavily invested in gold but it's because he knows what's coming and knows gold is a good hedge against it. The problem is that Schiff gets 5 minutes once a month on CNBC or Fox Business and the moment he says something like "Democracy is mob rule," the host immediately says such an idea is "crazy" or "out there" and changes the subject.

  The same is largely true for Ron Paul. He is generally ignored, ridiculed or misrepresented by the mainstream media and political establishment. If it were easy to spread a message those in power don't want spread, we'd all be Austrians already.

  Published: December 12, 2008 3:37 PM

• Inquisitor

  Greg, I think you're being a bit harsh. The site hosts a huge number of authors and articles catering to a variety of tastes. Not all need to be as focused on the present as this article, although more like it would be welcome.

  Published: December 12, 2008 3:58 PM

• Don Duncan

  Greg:
  "R.P. should be out there..." I'm sure he would IF he could get equal air time with the fascists. Even so, the public has been brainwashed by government schools and the media, so talk will not work. We need an oasis of sanity to show by example what a capitalist society can do. If libertarians could take control of 1 county or 1 city and create a showcase, we would no longer be just talkers but doers.

  Published: December 12, 2008 4:00 PM

• Lee Shackelford

  Who do Austrian economists consider their most worthy opponents either in the world of technical publications, or in the world of weblogs?

  Published: December 12, 2008 4:06 PM

• peter helbich

  great articel

  something from vienna austria . where it all began

  mozart, menger, mises, hayek etc.
  send this theorem to all your friends and let it loose in the internet
  it prooofs mathematically that the austrian school of economocs is right.

  regards peter helbich

  Published: December 13, 2008 3:31 AM

• IMHO

  Do you think the time will ever come that socialists will try to silence websites likes Mises.org?

  Published: December 13, 2008 3:48 AM

• YerMawm

  I love the update to the old adage, "The pen is mightier than the sword" LOL!

  ...and just where will Obamacorp get it's money?

  Published: December 13, 2008 12:42 PM

• JD

  IMHO: do you really need to ask? Socialism is an impossible system which does not, has not, and never will exist in the real world. Everything that has ever been called socialism has functionally been, at best, fascism, and at worst, absolute totalitarianism. So try re-formulating your question, substituting 'fascists' or 'totalitarians' for 'socialists'...in which case, the answer is obvious.

  Published: December 13, 2008 12:51 PM

• IMHO

  JD

  So, in essence, you are saying that the author is wrong to use the word "socialism".

  Published: December 14, 2008 12:15 AM

• Bruce Koerber

  December 14, 2008
  Is Not Being A Natural Born Citizen An Impeachable Offense?
  
  Especially with all the connections now to some of the corruption in Illinois it is important that the person elected as President fulfills, at least, the legal requirements to be President! This apparent mistake in the election process deserves an inquiry and a Constitutional verification.

  "A Natural Born Citizen is born in the country of parents who are both citizens (note not natural born citizens, simply citizens). If your parents came to America and become Citizens (through a Naturalization Process) then you would be a Natural Born Citizen and eligible to run for presidency. However if your parents remained non-citizens for whatever reason - you would not be a Natural Born Citizen but you would be a Native Born Citizen and would have all the rights of other citizens but you could not be president. Obama is a Citizen of the U.S. Obama is a Native Born Citizen (unless his birth certificate is false) but it appears he is not a Natural Born Citizen since his Father was not a Citizen of the U.S."

  Is this ineligibility an impeachable offense?
  

  Published: December 14, 2008 12:38 PM

• Rodolpho

  Barack Obama yes socialism and tirany

  Published: December 14, 2008 9:41 PM

• JD

  IMHO: I wasn't really commenting on the author's usage, but yes, I think a more accurate description of the current direction of the US would be as one which tends toward fascism, not 'socialism'. I think the world would do well to replace the term 'socialism' with one which more accurately describes what it actually proposes: 'altruistic totalitarianism'.
  

  Published: December 15, 2008 12:51 AM

• Capt. A.

  Mr. Brown states in his excellent artice!: “In other words, government is able to not only extract money from private individuals (taxes) but also to take away their (more tangible) private property.”

  The nail is again hit squarely on the head! Now consider this...

  Knowing that the gravid bitch of “isms” (Socialism, fascism, statism, totalitarianism, ad nauseam...) continues to grow and surely ANYONE who would like to live the only life they will ever have with the greatest real degree of real freedom, liberty, private property rights and privacy ... takes no real ACTION to change; they stay right where they are!

  Ladies and gentlemen, if you truly value the items mentioned above, LEAVE the venue! Why would you NOT walk the talk? I’ve heard EVERY excuse. Make none. Elucidation of the “tragedies” is eloquently pointed out by oh so many, very, very smart individuals ... yet ... they stay ... and the tragedy folds in and around them!! How “smart” are they?

  No lectures need be given about the Jews (1933) that were in “denial,” knowing that their lives were depreciating all the way to death—in Germany and so many other venues in times past. Some smart people saw, and acted ... walking the talk. They lived. LEAVE the stinking country! The American “thugatarians,” (politicians and bureaurats) are going to put their “jackboots” on anyone that defies them, (Stop paying your taxes and find out!) either economically or ultimately politically. Why would ANYONE NOT in denial ... stay in a country like that? Hope? Faith? Rise to the level of treasuring or valuing your freedom and liberty as paramount above all else; it is signified by ACTION! Leave.

  Capt. A.
  Principality of Monaco
  *******************
  

  Published: December 15, 2008 12:55 PM

• magnus

  I think a more accurate description of the current direction of the US would be as one which tends toward fascism, not 'socialism'.

  Fascism is a form of socialism. I know that various non-libertarians (i.e., statists) like to pretend otherwise, but still true.

  Published: December 15, 2008 5:24 PM

• Mark Frazier

  PPPs can extend state power -- or reverse it. Background on use of public sector land grants to create scalable tax-free trade zones (and reduce the need for taxpayer-funded education and health services) is at www.openworld.com, in two downloadable white papers. PPPs for eGovernment solutions also can advance economic freedom, as detailed at www.openworldinstitute.org . Libertarians should work for PPPs of such kinds, which roll back state predations while awaken dormant assets for civil society to provide public goods and services without taxation.

  Published: December 17, 2008 10:06 PM

• Tom Papworth

  I agree that the government-side of PPPs will render them less efficient and less effective than markets, but that is not really the point (and may even be a straw man).

  The question is not whether PPPs are inferior to markets; it is whether they are superior to direct state provision.

  You, I and the whole of Mises.org are devoted to convincing people that markets should be given free rein, but given that this is not going to happen overnight, and within the binary debate between PPPs and state provision, the question must be whether Obama (or whoever) is right to advocate PPPs.

  If PPPs are superior to direct state control then we should give those who advocate/implement them half a cheer for taking a step in the right direction even while we argue that far greater benefits will result from allowing market mechanisms to operate without any state intervention.

  Published: January 19, 2009 8:25 AM