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The California Supply Crisis Was Entirely
Predictable: Just Ask Hayek

Original Article

Posted By: Rush Was Right, 10/19/2021 9:15:42 AM

What do the theories of Friedrich Hayek have to do with our current supply crisis, with container ships piling up on the coast of California? Well, let’s see. Hayek, an Austrian economist, is best known for his book, The Road to Serfdom, in which he expresses his deep concern about the spread of socialism and the resultant threat to economic independence and freedom in general. It is the work of Hayek, after he took a position at the University of Chicago, that sparked the movement known as the “Chicago school” of economics. Names associated with the movement include Milton Friedman and George Stigler.

Comments:

Socialism doesn't work, and intrusive, big government encourages economic decline. Who knew?

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Reply 1 - Posted by: mc squared 10/19/2021 9:37:27 AM (No. 950656)
Excellent column that focuses on the avoidable supply chain problem, but applicable to every disastrous government actions. My recommendation for a must read.
9 people like this.

Reply 2 - Posted by: MDConservative 10/19/2021 10:00:11 AM (No. 950674)
As I was told years ago by a graduate student at a prestigious university, "If poor people had money, they wouldn't be poor anymore." Why didn't anyone else think of that?
3 people like this.

Reply 3 - Posted by: qr4j 10/19/2021 10:21:00 AM (No. 950693)
I am thankful for this well written article. It certainly helps me understand the supply chain issues we are having much better than before.
4 people like this.

Reply 4 - Posted by: Vaquero45 10/19/2021 10:33:06 AM (No. 950704)
This is the “must read” of the day. I’d be willing to bet that Hayek and Sowell aren’t mentioned in any of the philosophy, education or business curriculums at any major university anymore. I would also bet that none of their books are available on Amazon.
4 people like this.

Reply 5 - Posted by: Hugh Akston 10/19/2021 12:20:22 PM (No. 950824)
#4 is probably correct re: Austrian Economic theory even being mentioned, let alone taught. My son has a BS in Econ - 2009 - and he can verify that. He even questioned it during classes because he is an 'Austrian' by nature and was/is a frequent reader of mises.org while in school and today . The mises.org website is worth checking out. Click on the Graduate Studies link at the top and scroll down for the myriad of topics discussed. There is also a concise section for Beginners.
1 person likes this.

Reply 6 - Posted by: Birddog 10/19/2021 12:32:58 PM (No. 950846)
Regulations similar to AB5 have been tried, what happens is not just the demise of legitimate Independent contractors, that had always done their best to abide by "rules" it also creates an underground economy, totally off the books endeavors. Gypsy cabs, Black Markets, untaxed/clandestine incomes, smuggling, drug dealing, stolen goods, a shadowed society and economy that also needs to have it's own "Justice system"..in urban areas that means dead bodies in the streets., because incarceration is not an option. Compound this tendency with "Guaranteed minimum income", partially put in place already over the last 2 years with Stim payments, "Unemployment Insurance" that didn't require previous employment, any effort at a job search, no expiration date PLUS a Federal Bonus? Tens of millions more moved into the Off the Books/Hidden economy...and now when "Allowed" to return to Regular Jobs? Few seem to even want to, they already have an income stream of some sort, and at a level they are "comfortable" with. With no "Declared" income...Medicaid is easy to get, schools are already "free", pre-school/childcare is slated to be provided, even to those with "No Job" and no intention to get one. Transit is free or nearly so...Housing is(or can be) soon provided. Those programs will compound the tendency of people to "Featherbed". Panhandlers and entrance ramp/stoplight "Sign workers" can make MORE than the 9-5rs that hand them dollars, Loosey sellers on the street corner making MORE than the shopowner who's door they set up "Shop" outside of. "Greshams Law"
1 person likes this.

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