MCViewPoint

Opinion from a Libertarian ViewPoint

15 Trillion Gallons of Keynesian Goodness? – LewRockwell

Posted by Martin C. Fox on September 3, 2017

https://www.lewrockwell.com/2017/09/david-stockman/15-trillion-gallons-keynesian-goodness/

Harvey + government = the Perfect Storm.

Learn about the broken window and Corps of Engineering (government) planning.

……(Feroli) has proceeded straight to the “broken window fallacy” nirvana: the growth that destruction somehow always guarantees in a Keynesian world. If that was the case, why not just nuke the US and rebuild it from scratch, assuring triple digit GDP growth for decades to come.

You are going to hear how disaster will turn into prosperity due to rebuilding. This is where Frédéric Bastiat and his broken window story comes in.

A citizen discovers he has a broken window. He spends $10 to get it fixed. Now the glazier spends his earnings on a new scraper, the hardware owner takes his profit and…so on.

But wait! The citizen with a broken window has to spend $10 just getting back to go. Baby won’t get new shoes and the leaky roof will have to wait. Constructive and needed projects get sidetracked. There is no benefit to citizen.

The normal marketplace is thrown into disarray.

It will be the same with Harvey as it was with Katrina. Tens of billions spent on getting back to go.

Not that government projects are a good thing but money that could have gone to roads, hospitals and things people might actually need will get put on the back burner.

Like Katrina, building costs will increase, availability will decrease. That new addition will cost a bundle more or not get done at all. The normal marketplace will be thrown into disarray.

When I began work for a civil engineer one of the first things I learned was when the government is involved it will cost 2 or 3 times more, good ol’ boy contractors will be used and prevailing (union) wages will be paid.

The only groups that will benefit from Harvey are the select few that will rake in ‘government money’ and privilege. Just like any other government program.

Remember the government Katrina trailers that were loaded with formaldehyde? What will Harvey + government come up with this time?

Be seeing you

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I am not a number. I am a free man!

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