We Cannot Build An Economy On Lies

The Biden administration justifies such plans by claiming that “thousands of new jobs” will be created in the solar and windmill industries to replace those lost elsewhere, something that is economically impossible if the “new” technologies are more costly and less productive than what currently exists. (The bigger lie is that such destruction of the economy will reverse the dreaded “climate change,” making everything worth it.)

So, the lies continue to pile up. Massive borrowing and spending by the federal government will create all sorts of economic miracles such as ending poverty, pumping vast amounts of new money will neither increase inflation nor force up interest rates (from Janet Yellen), and the government can administratively replace prices and profits when it comes to capital development and there be no negative consequences or even the dreaded opportunity cost. All it takes is vision and political will, both of which Biden and his government own in spades.

We don’t need for the “build back better” economy to play out in order to know how this latest iteration of democratic socialism (or whatever one calls it) will end. Inflation already is here, even in the early stages of the so-called Biden boom. While Yellen, Biden, Krugman, and media acolytes such as Hughes are claiming that all that is needed to bring back prosperity is for government to borrow and print money, which will pay for all of the new “investments” to save us from climate change and in the process give everyone high-paying jobs, the economic adults in the room know better.

Economists Ludwig von Mises and Murray Rothbard didn’t live by lies, nor did they advocate replacing the truth with lies when presenting economic analysis. Mises a century ago proved that one cannot build an economy on socialist lies, and nothing since has proved him wrong.

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