Fellow Patriot: The voluntary financial generosity of supporters like you keeps our hard-hitting analysis coming. Please support the 2024 Year-End Campaign today. Thank you for your support! —Nate Jackson, Managing Editor

May 12, 2022

Economic Ignorance Causes Economic Collapse

Progressive activists claim that the changes they promote will make business “accountable” and the system more “fair.” Neither claim is supported by evidence.

John Hinderaker has been writing at PowerLine about the economic catastrophe taking place in Sri Lanka. Until very recently, that country was “not only food-secure, but a major agricultural exporter” of products like rice, tea and rubber.

One would think that creating prosperity and lifting millions out of poverty would be welcomed by government and social activists. But no. The government of Sri Lanka decided to mandate new policies prompted not by the recommendations of anyone with experience in industry, commerce or basic economics but by the howling of environmentalists demanding “all organic” farming.

Despite the fact that more than 75% of Sri Lanka’s farmers used synthetic fertilizer, the Sri Lankan government banned it outright.

The results were predictable. In one year, Sri Lanka’s rice production dropped by 14%, forcing the country to spend hundreds of millions importing a product they had formerly made enough of to feed themselves and export. Production of tea and rubber similarly collapsed. The price of food has quadrupled, and many staples, including liquid petroleum gas that Sri Lankans use for cooking, are in such short supply that citizens must stand in line for them, when they can get them at all. With its exports reduced to a trickle, Sri Lanka’s government is now begging the International Monetary Fund for a loan it seems unlikely to get — or be able to pay back.

If this pattern seems vaguely familiar, it should. Many of us are old enough to have witnessed the fall of the former Soviet Union, brought to its knees by failed collectivism. Younger folks have watched in real time as the economy of Venezuela, once the most prosperous country in South America, collapsed following implementation of top-down, command-and-control economic policies driven by socialist gobbledygook. Inflation hit 1 million percent there in 2018. Venezuelan currency — the bolivar — is worthless. Almost 80% of the country now lives in “extreme poverty.”

But the ruling classes never learn. Here at home, the Biden administration, in thrall to “climate change” theorists, is busy throwing wrenches into the gears of American industries just as destructively as Hugo Chavez and Nicolas Maduro did in Venezuela and the Rajapaksa regime has done in Sri Lanka.

Among President Joe Biden’s first acts in the White House was shutting down the Keystone Pipeline and throttling drilling for oil and natural gas on federal lands. Those decisions and others like them have sent fuel prices — especially diesel fuel — soaring, and with them, the costs of everything else. Biden refuses to discuss increasing production with American companies. Instead, he’s has gone hat-in-hand to Middle Eastern countries, begging them to increase production. (They refused.) He is also tapping the U.S. Strategic Petroleum Reserve, leaving America even more vulnerable should we encounter a fuel crisis not of our own making.

None of this should surprise anyone with a modicum of common sense or any experience with business, both of which are in short supply in government. What’s true in Sri Lanka was true in the former Soviet Union and is true in Sacramento. When people who have no concept of how to start or run a business decide that they will control entire industries, the inevitable result is collapse. Socialists, environmentalists and the government officials whose strings they pull are about as economically ignorant as they come. Most have never started or run a business. They have no concept of the requirements of actual production. Many cannot distinguish between costs and prices. They do not appreciate the difference between having to ask for people’s money (as competitive businesses must) and being able to demand it (as governments do, via taxation).

Progressive activists of all stripes claim that the changes they promote will make business “accountable” and the system more “fair.” Neither claim is supported by evidence.

Too much government control over business does not eliminate corruption but breeds it. Business leaders soon realize that their survival depends not upon pleasing customers but bribing government officials. And once producers are no longer accountable to consumers, product and service quality goes right into the toilet. (Assuming, of course, that you can get a toilet. A staggering number of the global population — in countries without truly democratic governments or robust, entrepreneurially capitalistic economies — still doesn’t have indoor plumbing.)

And, like killing the goose that lays golden eggs, transforming the U.S. into a command-and-control style economy with decisions driven by ideologues pitching scientifically unproven (or worse, disproven) theories will not better or more fairly distribute the goods and services that private enterprise creates. It will slowly constrict production and provision of those goods and services — just as Biden’s policies are doing now — until it’s no longer possible to produce at all. When that happens, millions starve. (As seen in yet another example of failed collectivism, Mao Zedong’s “Great Leap Forward” in 1960s China.)

There are some (arguably fringe) environmentalists who might not be devastated by that result. Paul Ehrlich authored “The Population Bomb,” a 1968 bestseller with doomsaying overpopulation predictions. Ehrlich’s wild-eyed predictions never came to pass but did prompt government policies responsible for some of the worst human rights abuses in history. (Author Charles C. Mann laid this out in grim detail in an excellent 2018 article for Smithsonian magazine.) Despite that, Ehrlich is still calling for “a massive reduction in the number of humans” on earth.

Others — only slightly less extreme than Ehrlich — describe their ideal system as one of global “democratic eco-socialism,” where a small group of elites will decide what everyone on the planet gets to have and do.

Regardless of their pet theories or reasons for wanting it, history shows that central planners and their top-down, command-and-control economics never work. Their theories are inevitably wrong in ways they did not anticipate; their desired goals don’t materialize; and the unintended consequences of their errors are even more destructive than the problems they allegedly sought to solve.

The United States is not — yet — on the brink of collapse. But economic policies preached by the ignorant and the arrogant can destroy our prosperity and peace, just as they have in the countries that took that path. More than 100 million people have died and untold amounts of wealth have been destroyed proving this point over and over again. We ignore the lesson at our peril.

COPYRIGHT 2022 CREATORS.COM

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.