The statists’ argument that government
intervention is necessary to correct market failures is easily defeated by
asking just this one simple question: how many more architects do we need?
The belief that government must
intervene to correct market failures rests on the assumption that government always
knows the "right" answer; how else could it determine when the market
has arrived at the wrong one? The absurdity
of that notion is quite evident when we think about how the central planners
would go about determining the “right” number of additional architects we need.
To figure out how many more
architects we need, they would first need know how many we have, and how old
they are, and when each one will retire, get too sick to work, move, or
die. Next, they would need to know how
many projects will be proposed and then undertaken in every city in the nation,
along with how many hours each will take to be designed. To know that, they would need to know the
future building plans and financial condition of every company, non-profit, and
person in this nation, along with their style preferences and schedules for
starting and completing their projects.
Not to mention the availability
and cost of credit to finance these projects, which means they must know what
the Federal Reserve and thousands of banks will do with interest rates in
response to general economic conditions.
This, naturally, means they would need to know what the general economic
conditions are going to be, and since the economy is global, that means they
would have to know basically everything there is to know about everything
everywhere. No doubt that President we-do-big-things Obama
would call this massive and futile undertaking an investment in our future.
Since it takes about ten years to
educate and field an experienced architect, they would need to know everything
about everything for the next ten years of economic activity world-wide. The statist’s first instinct would be to overcome
this dilemma by requiring everyone in the world apply for daily living permits
that must be approved ten years in advance, and load all of the economic
decisions into a massive computer model.
Given the government's inability
to forecast next weeks' new unemployment claims, the chances of projecting
trillions of variable data points ten years into the future and coming up
anywhere remotely close to the right number of architects needed are exactly…zero. And the government would not just get it
hopelessly wrong; it would spend hundreds of billions of dollars to get it
hopelessly wrong. And we would all spend
our entire days filling out the forms it would need to collect all the data
required to be hopelessly wrong in the digital age.
Yet markets accomplish this feat
day after day with ease. Game, set,
match.
Have you ever needed an architect
and had to wait ten years for the next one to become available? Are there millions of surplus architects
hanging out at Home Depot or perched at traffic islands holding homemade signs
that say "will enhance dimensional context for food"? No, you haven't, and no, there aren't. Free markets do not produce chronic surpluses
and shortages; it takes government intervention to produce such
distortions.
Markets supply the right numbers
of architects to the right numbers of firms without anyone forcing anyone else
to do anything. How? The same way markets supply the right numbers
of thousands of professions to millions of employers every day - by simply
allowing people to make self-interested choices of their own volition. The invisible hand of capitalist free markets
performs this and every other economic task far better, far faster, and far
cheaper than the heavy hand of coercive government.
For nearly a century, government
has taken upon itself the authority to intervene and impose its we-know-better
judgment on wages, benefits, working conditions, credentials, union membership,
and licensure. Along the way it has promulgated
innumerable industry-specific mandates and restrictions, and outlawed some
professions altogether. The more it
tries to “help”, the worse of a mess it makes.
With the passage of ObamaCare last year, the
State greatly raised the stakes for inadvisable market intervention; it will soon
impose its own judgments over how many doctors and nurses will practice and how
much they will get reimbursed for their services. The rationale for this unprecedented
intervention of central planning is to "keep the private sector
honest", and to correct the "failures of the market".
But
before we go ahead and turn
over nearly one fifth of our economy - and the labor markets for those
professions who will make our most critical life and death
decisions - to Mr. Obama's beloved central planners, I think it is
prudent to ask
him just one question, if I may.
Mr. President - how many more
architects to we need?
"Moment Of Clarity” is a
weekly commentary by Libertarian writer and speaker Tim Nerenz, Ph.D. Visit Tim’s website www.timnerenz.com to find
your moment and order his new book, “Tooth Fairy Government.”