Excellent warning about trying to resolve social issues by the power of government.
But What About the Children? - Llewellyn H. Rockwell, Jr. - Mises Institute
Krugman and the "Heroic" Fed
7 hours ago
As long as enterprises look only to profit, they are proof against all the evils of bureaucratism. The bureaucratization of privately owned enterprises that we see going on about us everywhere today is purely the result of interventionism, which forces them to take into account factors that, if they were free to determine their policies for themselves, would be far from playing any role whatsoever in the conduct of their business. When a concern must pay heed to political prejudices and sensibilities of all kinds in order to avoid being continually harassed by various organs of the state, it soon finds that it is no longer in a position to base its calculations on the solid ground of profit and loss...
The result is that these and other considerations foreign to the profit-seeking principle of entrepreneurial management come to play an ever increasing role in the conduct of business, while the part played by precise calculation and cost accounting concomitantly dwindles in significance, and private enterprise begins increasingly to adopt the mode of management of public enterprises, with their elaborate apparatus of formally prescribed rules and regulations. In a word, it becomes bureaucratized.
Thus, the progressing bureaucratization of big business is by no means the result of an inexorable tendency inherent in the development of the capitalist economy. It is nothing but the necessary consequence of adopting a policy of interventionism. In the absence of government interference with their operations, even the largest firms could be run in exactly as businesslike a way as the small ones.
The U.S. House of Representatives on Wednesday passed a bill to more than triple spending to fight AIDS in Africa and other parts of the world, one of President George W. Bush's foremost foreign aid quests.
The question nobody in Washington wants to answer is this: What gives the Congress the right to send American tax dollars overseas in the first place? Certainly not the Constitution. Why should American taxpayers, many of whom are poor themselves, be expected to fund foreign welfare? Remember that the poorest Americans are hardest hit by the inflation tax, which is the direct result of deficit spending and the printing of new money to service federal debts...
Even the worst domestic program is better than useless and meddlesome foreign aid.