A Bad Investment

Oh boy – another pundit whoops on the market and laments how the lack of regulation forced us into woeful times. Such diatribes are common these days, but this is at least written well. I say this – the writing is good, but the logic is faulty. Let me explain.

Each of us controls some tiny fraction of the world’s wealth. We can use it wisely and create more wealth, or we can use it unwisely and destroy wealth. Barring outside interference, those who use resources wisely control an ever increasing portion of resources while those who use resources poorly control an ever diminishing portion. That’s how free markets work. This process continually shifts resources to better uses and improves all of our lives.

But the process is encumbered. Our government routinely takes resources from the wise and gives it to the unwise. This is called “social justice”, and it harms us all, wise and unwise alike. Even worse, our government has encouraged unwise uses of resources, in some cases mandated unwise uses of resource, and even taken our resources and directly used them unwisely. This is not helpful.

Markets mean freedom of choice, and some people do choose unwisely. Politicians like to limit choices to protect the unwise by limiting their freedom. Yet doing so also limits the freedom the wise and suppresses the activity that can make our lives better.

Expansive government is a bad investment.

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