The Myth of Unplanned Economic Development

[sophia-sadek.livejournal.com]

One of the heroes of libertarian ideology is the railroad robber baron entrepreneur James J. Hill. He is contrasted with the other robber barons entrepreneurs who built the intercontinental railroad. The big difference is that Hill did not leverage public financing to construct his empire organization.

Hill derived his wealth from his serfs yeoman farmers who settled on his land to raise abundant harvests for transport to distant markets on Hills road. The settlers were forced encouraged to sell their produce to grain elevator shysters entrepreneurs at rock bottom market prices. These pilfering enterprising middlemen held on to the grain until a more favorable price was offered on the grain market and they obtained rate rebates by shipping in bulk. (They also bilked optimized grain prices from farmers by underrating the quality of the grain.)

When we look at the surface of Hill's story, it appears that no public planning went into this development. The libertarian historian has conveniently avoided looking at the planning that took place years before Hill obtained his fiefdom property. Racist Forward-looking politicians deliberately expropriated acquired the land from its native inhabitants for the purpose of economic development. Hill and his settlers maintained their holdings under the protective hand of federal and state thugs military personnel, lest it fall back into the hands of the original proprietors uncivilized people.

Although the Solyndra investment appears to be a piece of failed public planning, it has more of the earmarks of traditional robber baron private development. Back in the day, a thieving an enterprising operator would run his business into the ground and sell off the depleted stocks to a shifty trusted new partner, leaving the original investors with little or no return on their capital.

Were it not for public planning, this Internet space would not be available for us to use. In fact, I would not have the capacity to communicate as well as I do had it not been for public planning.

Is there really such a thing as unplanned economic development?

Comments

[sealwhiskers.livejournal.com]

Is there really such a thing as unplanned economic development?

No.

But the good hearted libertarian naively believes in it.

....and many businessmen and corporations they support just want to have free reigns to do what they want for biggest profit.

I wonder if it's even any value in discussing things with people that seriously tell you that "financial incentive to be right or uncorrupted are the best". Such a strong fantasy will stay put until something within shatters. And not even then will some realize that this story has been told, time and time again.

[montecristo.livejournal.com]

Economic ignorance is not confined to one ideology. There are plenty of libertarians, just like the ignorant on the so called right and left, or the conservative or liberal ideologies (if you can call them that) who do not understand how the market works. Economic development is planned. The issue is whether or not people are free to make their own plans, with their own resources, or whether some sort of authority shall impose plans by force on everyone else and confiscate wealth they themselves did not produce. In the free market, entrepreneurs, using capital they have themselves produced, earned, homesteaded, or have had invested freely with them, plan economic development. The plans do not always work and produce profit but it is their own capital and that of their willing investors at risk. All other systems use force to direct the production and distribution of goods and services, and to the exent that they do they run into the calculation problem. The belief that the default understanding among libertarians is that economic development is unplanned says worlds more about the limits of your own imagination and knowledge, or your assumptions about the nature of "planning" than it does about libertarians.

"What is politically defined as economic 'planning' is the forcible superseding of other people's plans by government officials."
— Thomas Sowell

[sealwhiskers.livejournal.com]

I'll rephrase what was written in the post and say "unrestrained".

There fixed that for you.

And yes, I love taxes too.

[telemann.livejournal.com]

[notmrgarrison.livejournal.com]

Problem with that is the top 2% already contribute far more than their share.

[underlankers.livejournal.com]

Actually they contribute far under their share given they control about half the total wealth in the United States where the bottom quarter put together doesn't come anywhere near it. Granted, asking those who benefit most from the current system to shore up the very system they benefit from is of course completely evil and immoral and akin to clubbing baby seals.

[telemann.livejournal.com]

No they don't. And spare me the talking points that have been trotted out in 1000s of threads before about who pays taxes etc. We need to raise revenues, and if that means cutting tax breaks for private jet owners to allow funding of programs that affect millions of Americans versus 1000 filers, most Americans are overwhelmingly for that. Republicans know this :-)

[montecristo.livejournal.com]

First off, oh yes, yes, they actually do (http://www.thefreemanonline.org/headline/tax-rich-truth-squad/).

We need to raise revenues...

Unsupported assertion. It automatically assumes that all government overspending is necessary and proper and furthermore, that if revenue were raised through higher taxes, that politicians in government would not spend it as recklessly as they already have in wracking up the debt that exists now.

See how annoying this is?

[sealwhiskers.livejournal.com]

"Truth patrol" (or squad or whatever they beep about)doesn't mean they say the truth just because they have put the word "truth" in their logo.

Australians explain it (http://www.999ideas.com/redistribution-of-wealth.html)

Reuters talk about it (http://www.reuters.com/article/2008/08/25/us-usa-tax-loopholes-idUSN2235030820080825)

Surowietcki shares insight (http://www.newyorker.com/talk/financial/2010/03/15/100315ta_talk_surowiecki)

3 chapter from David Cay Johnston's book about it (http://www.perfectlylegalthebook.com/Chapter3.pdf)

New York Times Economy gives G.E. as example (http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=all)

Tax Justice Network talk about loopholes and flat tax (http://taxjustice.blogspot.com/2010/02/ctj-flat-tax-consolidates-loopholes-for.html)

[notmrgarrison.livejournal.com]

"No they don't. And spare me the talking points that have been trotted out in 1000s of threads before about who pays taxes etc."

You mean spare you the actual facts, b/c hey, we need to raise revenues?

How do you...

[sophia-sadek.livejournal.com]

... determine that share? What are your criteria?

Re: How do you...

[montecristo.livejournal.com]

What are yours? "Need" is subjective, and potentially limitless. Given that one accepts the premise that it is okay to violate the rights of some for the needs of others, where does this process stop? What constitutes "fair" if you throw out the natural right of property?

Re: How do you...

[sophia-sadek.livejournal.com]

I favor a Socratic definition of justice.

Re: How do you...

[montecristo.livejournal.com]

There is no justice without property.

subjective, yes.

[foolsguinea.livejournal.com]

So all you're saying is, "I don't like it," subjectively.

OK.

Re: subjective, yes.

[montecristo.livejournal.com]

No, I am saying that you can't found a moral code on "need" and expect it to work for people.

[prog-expat.livejournal.com]

The top 1% controls 35% of total net worth and 43% of the financial wealth, yet only pays a total (fed, state, and local combined) of 31% of their income as taxes (http://sociology.ucsc.edu/whorulesamerica/power/wealth.html).

Some people say...

[sophia-sadek.livejournal.com]

... that there's a woman to blame, but I know that it's my own damned fault.

[404.livejournal.com]

How do you make a contribution to reduce the debt?

There are two ways for you to make a contribution to reduce the debt:

You can make a contribution online either by credit card, checking or savings account at Pay.gov

You can write a check payable to the Bureau of the Public Debt, and in the memo section, notate that it's a Gift to reduce the Debt Held by the Public. Mail your check to:

Attn Dept G
Bureau of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188

[gunslnger.livejournal.com]

I'm already making more of a contribution than I'm required to by paying "income" taxes.

Good point.

[sophia-sadek.livejournal.com]

I had planned to lead a life of leisure, but I was steered into industry by the force of government planning. Now, some people in the government think that mistakes were made.

The uncorrupt financial incentive...

[sophia-sadek.livejournal.com]

... is like the idea of Mary's perpetual virginity. It is better not to laugh at it lest a libertarian Ignatius attempt to hunt us down and kill us.