Planned Economies

Another good one from Cafe Hayek: “No. Just No.”

Second and even more importantly here: “national productivity strategies” are, practically speaking, strategies or plans imposed by the state. They are schemes pressed down from on high by politicians and bureaucrats each of whom not only is motivated chiefly by political goals (and, thus, likely to become a crony or a tool for special-interest groups), but who is also distant from – and hence ignorant of – the countless and ever-changing details of economic reality that must be known and taken account if an economy is to have any real prospect of growing.

A country no more needs a “national productivity strategy” than a country needs a “national prepare-evening-meals-for-the-family strategy,” a “national take-the-kids-to-visit-the-grandparents strategy,” or a “national dating-for-singles strategy.”

A politician “doing something” about the economy is like a dumb sitcom dad swinging a sledgehammer around inside the house to kill a fly. He may very well kill it, and confidently declare so, yet ignore all of the holes he left in the walls.