Arrogant, Ignorant and Dangerous

The most frustrating thing about watching congress strut around telling us they're going to solve a financial crisis they created is the fact that they no nothing about the subject. They repeat politically expedient myths and lies about market economics and the equally ignorant public nods their heads at any simplistic explanation of a complex problem.

Look back at the oil bubble of this past summer. One of the favorite scapegoats was speculators in oil futures. It was said they were driving up prices for profit at the expense of the public although none of these demagogues criticised them when the price plummeted. It was never explained or understood that futures traders were just predicting future supply and demand and that all trades require a buyer and a seller.

John Lott warns us not to trust control of our economic lives and individual decisions to government force run by by people who wouldn't know a balance sheet from a bed sheet:

"Politicians pose as the ultimate experts. They may never have worked in an industry or studied an issue before, but after few months of time on a topic they know everything: the types of cars that should be produced, the science of global warming, and how much doctors should charge for different types of surgery...

Outside of studying law, few in Congress even have backgrounds that are closely related to some of the issues covered by government. Just take the Senate this year, almost half, 45, are attorneys. Only one doctor, four farmers, 13 business people, seven teachers, four professors (all law, and three are listed as just adjuncts), and virtually all the others list their past experience as professional politician. No members of the Senate are scientists or economists. One member of the Senate played professional sports, and another owned a professional sports team...

...Harry Reid says Congress will give the automobile companies another $25 billion when they provide a “viable plan.” But how is Congress going to evaluate what a “viable plan” is better than the shareholders and bankers whose money is at stake? The auto companies presumably have to turn to Congress for money because others don’t think that they are good investments.

Would you want to invest in a company that congressmen tell you is a viable investment, or in companies where shareholders and banks are willing to put their own money?"