Obama and Our "Structural Issues."

on Friday, June 24, 2011

The trouble is in thinking about the economy as if it were a house. It is not a house. It is a living and adaptive animal. The economy adapts to its own needs, and any intervention causes problems.

The economy is like a human being that moves from civilization to the wilderness and has trouble finding food. He begins to burn off fat stores and build up muscle as he runs around looking for food and building weapons and a house and so forth.

The fat cells complain about being burned alive, and Obama appears on TV and tells us that there are some structural issues with this person's body. He says that as his body is running around it is becoming healthier and stronger, and what we need to do is figure out where the calories from those displaced fat cells should be directed, and which muscles should be trained for future activities that the man might like to do.

This is all nonsense, of course. The man's body knows far better where to put those calories and will burn fat and build muscle in a much more optimal way that anyone could ever possibly imagine planning. Central planning is similar to attempting to plan the use and function of every calorie the body ever consumes. It's impossible and unnecessary.