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Friday, July 24, 2009

The Stimulus Was a Success!

I was watching the Communism Channel, and saw an interesting bit. The host asked "Was the stimulus package a success? The unemployment rate is still rising!" The guest said "The market is very complicated. We can't calculate how many jobs were created via the stimulus package. Without the stimulus package, the recession would have been worse."

This reasoning means that State bureaucrats are completely immune from accountability. There is no way to perform a proper scientific experiment, because there's only one physical reality. There's no way to go back in time and try the alternative and see what would have happened.

If you're critical of the stimulus law, then there's no way for you to prove that the stimulus package was merely a wealth grab by insiders.

It makes logical sense that the stimulus package overall destroyed wealth. The government printed and spent and lot of new money, to "stimulate the economy". In the meantime, productive workers lose their savings and the value of their paycheck. A State bureaucrat is building a new road, but in the private sector someone can't afford a vacation or a new computer.

All government actions are ultimately destructive in nature. The only thing the stimulus package accomplished was pork projects for insiders. The Federal Reserve cannot decrease nominal interest rates below zero. By having additional deficit spending, the Federal government raises the inflation rate, further lowering real interest rates.

For example, the Fed Funds Rate is currently 0%. If the inflation rate is raised from 20% to 30%, then real interest rates drop from -20% to -30% (technically, 1-1/1.2 to 1-1/1.3, 16.7% to 23%). This is a further subsidy to financial industry insiders. The Federal government must provide the further inflationary spending boost, because only the Federal government may have unlimited dollar-denominated debts without being forced into bankruptcy.

There's an interesting fnord in the above bit on the Communism Channel. The host is merely reading questions from a script/teleprompter. When the guest spews nonsense, the host doesn't say "Bull****! I call shenanigans!" The host says "Thanks for appearing on my show. I appreciate your insight." By refusing to call out lies as lies, the host adds legitimacy to those lies.

A "journalist" is really a professional comedian. They are professional actors, reading from a script prepared by others.

Following the reasoning on the Communism Channel, no State policy can every be declared a failure! It's impossible to prove that things would have been worse without government intervention of the market!

I intend to conduct an experiment with practical agorism in the next few years. The theory of agorism will prove its value in the real world. Just because I haven't started yet, doesn't mean I never will! Right now, "raise awareness" and "recover my personal freedom" are prerequisites to attempting practical agorism.

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