Why does anyone today still believe that big government can solve the world’s problems? When I discuss politics with people, they frequently believe in government solutions because they feel that so far, it’s been working OK. After all, we’re pretty safe, we’ve got healthcare, the FDA protects our food, and the EPA protects our air; why complain? Let’s be grateful that our politicians protect us.
Those believers are stuck in their rut much like the poor who receive welfare are trapped. Their lives are minimally OK thanks to government support, so why rock the boat? And that’s a sadness. Millions of people for generations have been lining up for freebies from the government and then think that, although they’d like more (meaning more stuff taken from the rich and given to them), since they have food and shelter, the government is taking care of them.
Given that background, I would suggest that John Stossel be less black-and-white in subtitling his book, “Why Government Fails-But Individuals Succeed.” He could have said instead, “Why Government Does a Pretty Crappy But Just Acceptable Enough Job to Fool the Masses, But Individuals Are Awesome When Given the Chance to Spread Their Wings.” Of course, Stossel’s title is much better than my suggestion since he gets his point across much more succinctly. In fact, his whole book is a concise registry of arguments neatly laid out to explain why the things people take for granted are often false.
The overarching theme, of course, is Stossel’s libertarian view that, “People vastly overestimate the ability of central planners to improve upon the independent action of diverse individuals.” He proceeds to show example after example of how this theory plays out in the real world. For example, he writes:
“Tougher airline safety rules lead to higher ticket prices, which lead more people to drive to Grandma’s house. I call that statistical murder.” In so many fields, the government regulators make so many rules (often encouraged by big business to quash smaller competitors) and have no idea of the unintended consequences. Consider Obamacare, which told insurance companies how much they could charge, who they had to cover, and what type of coverage they had to provide. What did many companies do? They either left those markets or went out of business. So how does that help the majority of people? I am not sure of Obama’s intention, but the consequences of his plan were devastating for millions of families.
Another regulation under Obama that had severe consequences that hurt the poor was his “cash for clunkers,” a program wherein the government (that is, you and me) paid people to buy their old cars, which were then destroyed. Stossel explains, “Cash for Clunkers destroyed so many used cars that the average price of used cars rose $ 1,800. And politicians claim they help the poor.”
What may sound like a well-intentioned policy can destroy a market, which ultimately means more unemployment for those who need work the most. Take, for example, how unions, which are in bed with politicians (“Our members will vote for you if you make laws that benefit us.”) destroy industries. “…Unionized companies atrophy. Nonunion Toyota grew, while GM shrank. Southwest Airlines became the largest airline in the United States, and JetBlue, founded in 1999, now takes in nearly $ 100 million a year, while unionized TWA and Pan Am went out of business. Union rules “protect” workers all the way to the unemployment line.”
Stossel stresses the importance of a profit model, something progressives would suggest is evil. But when you go buy a coffee, for example, you see that’s not true. “You give the clerk a dollar. She gives you the coffee. Then you both say, “Thank you.” Why the odd double thank-you moment? Because it’s a mutually beneficial exchange (the store wants your money more than it wants coffee, whereas you want the coffee more than the cash)…. But first the assumption that profit is unfair—and that communal is better than private—has to be overcome. It is intuitive to think public is better than private, but next time someone tells you that, tell them to think about this: public toilets.”
John Stossel is an important voice in reminding all of us how much we need to protect our liberty, our right to make contracts with others without government intervention, and our duty to push back against government intrusion in our lives.
Obviously, libertarians will love the book, but progressives, too, should read it. Without name calling or theatrics, Stossel carefully lays out the principals that make America great.
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