Think of how much easier the job of government is, when instead of seeking competitive increases in production, it seeks redistribution and reduced unemployment. The first requires that you have some comprehension of your economy. The second requires that you have little to none.
The net effect of the Keynesian revolution was to change the purpose of the government from one of concentrating capital such that the population would derive benefits from increases in competitiveness and production, to one of consumerism, whereby the citizenry is discouraged from saving in order to create consumer velocity.
We have accomplished that objective. We have converted to the consumer society and shipped the productivity of our lower classes offshore, and made the upper classes dependent upon the lower classes consumption. We have destroyed the cultural habit of saving. And with it, the culture of individual responsibility. Our whole country lives under the myth of prosperity without applying a discount to the increased risk we are exposed to by our hubris.
The responsibility of the state is capitalization which reduces risk. Not consumption which increases it.
I am not against redistribution or the insurance-state. I am against the destructive state. And our state has become destructive. It has become destructive because it has become consumptive. And it justifies that consumption by leaving competitive increases to the private sector, despite the market’s incapacity for extraordinary investments.
We need 200 nuclear power plants. We need a new power grid. We need to convert to electric cars. We need to rebuild the voting system and reform the houses of government. We need to increase research funding for hard sciences and decrease it for humanities and social so called sciences. We need to change the structure of the tax code. We need to change accounting procedures that allow causal laundering of money. We need to restructure corporate law so that we can de-corporialize the corporation so that it must serve customers or fail. We need to reform the banking industry. We need to privatize the administration of social insurance. We need to do a hundred other things that will create institutional improvements for the population to compete against other nations who have cheaper labor costs.
Yet we consistently fall under the Keynesian spell, and distract ourselves from the meaningful work of building a competitive society.