That quote by Rothbard is the first thing that pops into my head whenever somebody completely ignorant of economics brings forth an economic plan. Needless to say that’s the thought that entered my head when the Pontifical Council for Justice and Peace of the Catholic Church brought for their opinion on how the current economic mess should be fixed:
The Vatican called Monday for radical reform of the world’s financial systems, including the creation of a global political authority to manage the economy.
A proposal by the Pontifical Council for Justice and Peace calls for a new world economic order based on ethics and the “achievement of a universal common good.” It follows Pope Benedict XVI’s 2009 economic encyclical that denounced a profit-at-all-cost mentality as responsible for the global financial meltdown.
After reading that I can say with certainty that the Catholic Church should stick to theology and leave economics to the Austrian school. What their plan entails is basically doing the same thing that got us into this mess but harder. Hell they didn’t even get the cause of the meltdown correct, it wasn’t some mythical “profit-at-all-cost mentality” but government constantly meddling in the free market.
The government’s attempt to boost up the housing market was just another failure in a long line of economic idiocy. Let’s also not forget labor laws put into place that makes many laborious tasks in the United States outrageously expensive. Then there are the endless Environmental Protection Agency (EPA) regulations that make the construction of a manufacturing facility within the United States almost impossibly expensive. Cheap credit was granted to those who obviously couldn’t pay back the loans which did a huge number of the financial market. I could go on listing various government failures that got us into this mess but I think you get the point.
I believe it is a sign of insanity to try the exact same thing again and expect different results. If you place your hand on a hot stove it’s going to burn every fucking time, and if you allow central planners to meddle with the free market the economy is going to collapse every fucking time. Central planning is what ultimately destroyed the economy of the Soviet Union which caused the entire state to come crashing down. European Union central planners are in a real mess right now hoping the economy of Germany is strong enough to bailout the other member countries. China had to create Special Economic Zones which allow more free market practices to advance their economy.
Creating a “world economic order” is going to take the problems currently facing most developed countries around the world, amplify them, and cause far more widespread destruction than we’re experiencing now.
When you lack knowledge in a specific subject it is best to not offer advice regarding that subject.