Tuesday, June 19, 2012

Of the G-20 and Running the World

When you think about it, it is ridiculous.  In fact, it would be pitiful, if they were not so serious and did not have the power to do seriously bad things.  I am referring to the leaders of the Group of 20 (G-20) nations, who recently met in Mexico, thinking that they run the world.

If the question were put to you, “Who runs the world?” there could be several correct answers, but none of them would be this group of people, or any subset of them.  Nevertheless, because they think that they do run the world, and because they act on that belief, they do a lot of things that not only do not work but that make things worse.  Then they gather again and try something else, much of which is designed to clean up the mess caused by their previous foray in hubristic action.

The world is a complex place, with billions of people each doing complex things and interacting with each other in complex ways.  Then the planet itself does a lot of complex things.  Take the weather, for instance.  With computers and a hundred years of scientific study, weather forecasters have succeeded in the ability to predict the weather with a passable degree of accuracy two or three days out.  Beyond that, the accuracy of forecasts declines to about 50-50 (flip a coin) and drops from there.  The ability to change the weather, after a lot of work and investment, remains elusive. 

You have to be very smart, or think that you are, to convince yourself that you can in any significant way control the economy of your own nation, let alone of the world together.  The Russians, who are very smart people, tried it for 70 years with less than success and with the death and misery of tens of millions of their people.  The communist Chinese gave it a go, too.  Lately they have been reluctantly recognizing that there might be a better way—though they act like they are still not so sure.

Consider how many of the most serious problems facing mankind today are caused by people like these G-20 government leaders who fancy that they run things.  A few examples:

  • The economic malaise in the United States.  The U.S. economy has just passed through a very deep recession, caused by government programs that encouraged people to buy houses that they could not afford, investors to invest in the mortgages used to buy those houses, banks to take government investments in their capital that they did not need, and people who could afford to pay their mortgages to walk away and leave the keys on the counter.  To solve those problems, the U.S. government spent a trillion dollars it did not have, increased rules and regulations on businesses that could otherwise create new jobs, “created” a quarter of a million new jobs at the cost of eliminating a million jobs in the private sector, and threatened investors and small businessmen with stiff tax increases.  Economic activity remains in the doldrums.

  • The second economic recession in Europe.  The European economy went into recession about the same time that the U.S. economy did, for rather similar reasons.  It then weakly recovered, briefly, and then went back into recession when the promises that the governments of southern European countries made over decades to buy votes at last became more expensive than they could borrow money for—let alone pay for.  Now, every couple of weeks Greece, Italy, or Spain goes into economic crisis, the rest of the European leaders make empty promises to solve the problem, followed a couple of weeks later by new crisis and another round of promises.  That has been going on for about a year, while economic activity heads south.

  • The availability of energy.  From the gasoline that we put in our cars, the electricity that lights our houses, to the natural gas that warms our offices and homes government rules affect the availability, price, distribution, and supply of energy.  The United States imports enormous amounts of oil from unstable countries that use the money we pay for it to threaten our people at home and abroad.  Meanwhile, we have more than enough supplies of coal, natural gas, and oil located in oil shale and oil sands and off our own shores to meet all of our needs now and for the foreseeable future, but government efforts to run the energy business prevent us from using them.
These are just three groups of examples of many.  Once again I call on the wisdom of William Tecumseh Sherman, the great Union general of the Civil War, who famously refused to run for President of the United States with the assertion that if nominated he would not run, if elected he would not serve.  He gave his friend and colleague, U.S. Grant, who did not make such a refusal, a piece of excellent advice:

My opinion is, the country is doctored to death, and if President and Congress would go to sleep like Rip Van Winkle, the country would go on under natural influences, and recover far faster than under their joint and several treatment.
(William T. Sherman, letter to General Ulysses S. Grant, February 14, 1868, in William Tecumseh Sherman, Memoirs of William T. Sherman, p.922)

If someone should ask you, “Who runs the country?”, the correct answer is, “no one.”  Plenty pretend to, and many others wish to, but none do and none can, and we would all be better off if they would stop trying.  Our nation’s founders would have recoiled in horror at the question, because they intentionally created a nation that no one could run.  Why else have three branches of a federal government, one of which is divided into two separate houses, and state governments take their share of governmental authority?  They had seen Europe and knew of Asia where people for thousands of years had royally messed things up by trying to run their countries.

Instead, the American founders created a system where each person would run his own life.  The leaders in government were to run the government, that for the most part was to stay out of people’s lives and keep foreign governments at bay should they have any thoughts of trying their hand at running the lives of Americans.

That vision of the founders has been fading.  Today, make a list of the things that you can do that do not involve some sort of authority or permission from government.  It will not be a long list, and it has not been getting any longer in recent years.  Then ask yourself if life has been getting any better.  If it has, congratulate yourself on your power to overcome.

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